Vechain Foundation, the nonprofit behind the construction of the VeChain public blockchain platform, has announced that 1.1 billion VET tokens worth $6.7 million dollars has been stolen from VeChain Public blockchain platform, reports TheBlockCrypto on December 13.
According to the company, their buyback address was compromised at 8:27 pm on Friday, December 13, 2019 and the tokens were transferred to the address 0xD802A148f38aBa4759879c33E8d04deb00cFB92b.
The company believes that the hack did not happen as a result of a flaw in its system policies, standard procedures or hardware wallet solutions but from human oversight on the part of its finance and auditing teams.
“Security breach was most likely due to misconduct of one of the team members within our finance team, who have created the buyback account without thoroughly obeying The Standard Procedure approved by the Foundation, and our auditing team did not pick up this misconduct, due to human error,” says the announcement.
“We would like to emphasize that the incident is in no way related to the effectiveness of the actual Standard Procedure or VeChain’s hardware wallet solutions.”
Established in Singapore in 2015, VeChain features a blockchain-based lending platform that helps clients determine the quality of the products bought through supply chain analysis. The platform features two tokens—VeChain Token (VET) and VeThor Token (VTHO)—with the former used to make payments across its network and the latter used to perform smart contracts and run applications on the blockchain.
VeChain has taken some serious steps to trace the funds. It has flagged the address, so that any addresses the hacker attempts to move the funds to can also be traced, in hopes of preventing the hacker from ever cashing out the stolen crypto. The company has also involved Singpore’s Law Enforcement Agent as well as enlisted the help of Hacken, a cybersecurity service company, to help fish more information about the criminal.