VeChain loses one billion VET tokens from the wallet of the buyback program

Source: Akarat Phasura – shutterstock

  • A few hours ago, VeChain announced that a total of 1 billion VET tokens had been stolen.
  • An employee made a mistake while creating the private key for a wallet and the private key could be stolen.

The VeChain Foundation announced in a blog post that a private key to a wallet of the buyback program could be stolen through human error. However, VeChain reacted quickly and immediately launched an investigation into the incident. Even so, more than a billion VET tokens could be stolen from the wallet.

Human error causes mega-hack

According to the VeChain Foundation, around 1.1 billion VET tokens were sent to this address last night, probably the hacker’s destination address. The VeChain Foundation immediately marked the address on VeChainStats so that it would be notified as soon as the hacker sends the VET from the address. The post continues:

The VeChain Foundation has tracked the transmission of these VET tokens in real time and has taken several steps as detailed below to contain the situation. The security integrity of the mainnet and our official mobile wallet was not compromised in any way or form.

VeChain has also notified all exchanges to immediately suspend and freeze all tokens originating from the hacker’s address. VeChain is continuously investigating the case and monitoring every flow of data and money. The team has located the cause of the incident and comes to the following conclusion:

The security breach was most likely caused by the misconduct of one of the team members within our finance team who created the repurchase account without carefully following the standard procedure approved by the Foundation, and our audit team did not address this misconduct for human reasons, which was in error. We would like to emphasize that the incident is in no way related to the effectiveness of the actual standard process or VeChain’s hardware wallet solutions. And the person responsible bears the responsibility and the consequences of the internal management measures without complying with full compliance.

The VeChain Foundation is currently doing everything possible to find the hacker. It also reported the incident to Singapore law enforcement agencies. Further updates will follow.

Change in governance model finally approved by the Steering Committee

The VeChain steering committee decided a few hours ago to change the governance model and introduce the decentralized VeVote voting platform. On December 13th, the VeChain Foundation announced that the very first voting on the VeVote platform had been successfully completed.

The new governance model changes the distribution of votes by giving the majority of votes and authority back to the community. This gives the operators of business nodes and X-nodes the right to vote up to 60% of the votes. The remaining 40% of the votes go to masternode holders. These consist of developers, authorities and companies that have at least 25 million vocational training courses.

This gives the community new power and enables it to participate directly in future development decisions and thus to influence the further progress of the project through greater decentralization. This move could set a precedent that could serve as a role model in the blockchain industry.

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