VeChain’s Buyback Wallet Lost $6.6 Million to a Hacker

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VeChain-hacker

On December 13, VeChain Foundation revealed that its wallet had been attacked by an unknown hacker. More than a billion VET tokens have been stolen, which around the time of theft amounts to around $6.6 million. The tokens had been redirected from the foundation’s buyback wallet to a private wallet address. 

In the official announcement, VeChain Foundation clarified that its existing hardware wallet solutions, as well as its standard procedure in operations, had nothing to do with the attack. As per the investigation, the security breach was a result of a human error. 

VeChain Foundation suspected that one of its staff from the finance department who had created the account had violated some sections of the foundation’s actual standard procedure. The auditing team had failed as well to notice the internal misconduct, the foundation explained. 

Apart from sharing what had possibly caused the security breach, VeChain Foundation also clarified that they are taking the matter seriously and guarantee that they would get into the bottom of the incident. They have already employed the services of Hacken, a Blockchain startup with expertise in cybersecurity and data management. 

The foundation also notified crypto exchanges. They had provided a link that shows the address of the hacker, which was tagged on VeChainStats. Other relevant parties had also been warned to monitor, freeze, and blacklist all funds coming from the hacker. Even the withdrawals being made using the corresponding wallets were asked to be monitored as well. 

Currently, VeChain Foundation is investigating alongside the country’s law enforcement agency in hopes of getting more clarity about the attack. As part of the massive effort to ensure that such instance wouldn’t happen again, the foundation initiated a security investigation on other digital assets within their custody. 

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