On December 13, VeChain Foundation announced that it had lost about 1.1 billion VET tokens to hackers via their buyback crypto address. This is a huge blow to a crypto project, which has received a lot of praise from the crypto community. In the announcement, VeChain announced that efforts were already underway to recover the lost tokens.
One of the measures it has taken is to tag the hacker’s crypto address and other addresses associated with the address using the VeChain Stats monitoring tool. This will allow the foundation to get updates on where the tokens are moved such as exchanges, where hackers might attempt to cash out.
VeChain foundation is also working with crypto exchange to monitor and freeze any funds that come from the hackers. Particular attention is being to exchanges that the flagged addresses have transacted in the past.
According to the announcement, VeChain Foundation believes that it was most likely an inside job by someone working in the finance team. It claims that someone in the foundation created the buyback address without following the rules created by the foundation. The announcement goes on to claim that the auditing team failed to notice the issue due to human error.
The foundation emphasized that this hack was not related to the hardware wallet solutions offered by the company. Various experts in the cybersecurity industry are keeping a close eye on this development with the aim of recovering the stolen funds.
This hack does not appear to have had much of an impact on the VET tokens. Shortly after the hack was announced, the tokens had only seen a small drop of 5% in value. The market cap for the coin remains above $320 million.
It is encouraging to see the level of cooperation by exchanges after this hack. To eliminate nefarious actors in the crypto sector, it is quite clear that a united front is the only way to stop them. This level of coordination should be extended to include law enforcement agencies.