How did 1.1 billion Vechain VET token hack happen?


Here we go with another hacking scandal. This time hackers stole 1.1 billion Vechain VET tokens from Vechain Foundation on the 13th of December. The latest Vechain VET token hack is the largest VET token hack to date! What was the cause and how will the Vechain Foundation risk manage it from here on?!

14 December, 2019 | Vechain news – The Vechain Foundation reported that the buyback address of Vechain has been compromised. The misconduct happened due to a likely human error. The Foundation claims that the staff created the wallet without following the necessary security protocols. 

Approximately $6.6 Million Worth of VET Tokens stolen

On the 13th of December 2019 Vechain hack announcement shook the market. The Vechain Foundation explained that the hack was due to human error as well as the mismanagement of their staff. The foundation added that:

“The incident has nothing to do with the effectiveness of the current standard procedure or Vechain’s hardware wallet solutions.”

Furthermore, the foundation reassured that the security integrity of Vechain’s mainnet had not been affected.

Nevertheless, hackers stole approximately 1.1 billion VET tokens as a result of this breach. The following is the VET token hacker’s wallet:

0xD802A148f38aBa4759879c33E8d04deb00cFB92b

All the addresses associated with the VET token hacker’s address have been tagged on VeChainStats. The system automatically updates the list as soon as the hacker sends any funds from the original hacker’s address. The Foundation has notified all crypto exchanges to monitor this address. Also, the foundation has frozen all funds from the attacker, as well as withdrawals from the corresponding trading wallets.

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Notably, in the September 2019 financial report of the Vechain Foundation, the organization revealed that it controlled 27.3% of total token supply, i.e., 23.7 billion VET. This hacking represents a loss of more than 4.6% of the Foundation’s treasury, which accounts for 1.3% of the total Vechain supply.

2019 Vechain Hack: Launch of Security Investigation

Aside from the above measures, Vechain has launched an additional security investigation into the buyback wallet hack. In order to prevent further breaches in the future. The foundation will work with cybersecurity and law enforcement professionals to gain insights into their 2019 Vechain hack.

VET Token How did the hack impact the price of VET token price? VETUSD price took 9.4% hit, also impacting the rest of the market too. It is likely that the VET token price will be under further bearish pressure.

AtoZ Markets team has contacted Vechain for comments and has yet to receive a response.

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