VeChain hack: $6.7M lost in buyback wallet breach

VeChain, an Ethereum based enterprise blockchain platform was hacked resulting in loss of more than one billion VET tokens worth around 6.5 million dollars. 

VeChain hack

According to the firm’s Twitter account as well as a detailed blog post, the company suffered a breach on its buyback wallets resulting in a loss of 1.1 billion VET tokens. The company’s buyback wallet was “compromised” through uncertain means with the attackers taking more than six million dollars in crypto.

VeChain became victim to a security breach the likes of which have previously affected various enterprises, wallets, and exchange platforms. The buyback wallet possessed a large amount of the company’s VET tokens and the damage done to their holdings is significant. The company is currently working to find the source of the VeChain hack as well doing its utmost to recover the losses.

VeChain hack: Where did the funds go?

The hacker immediately transferred 1.1 billion VET to another blockchain address. The company has marked the address so that it can trace any future trades made by the asset. All addresses that interact with this marked address would also be traced and this would prevent the hacker from exchanging the tokens for cash.

VeChain hack: Company’s response

VeChain Foundation immediately took steps to ensure that the remaining funds remain safe and no further problems arise from the breach. As soon as the company detected the hack it informed all its users about the details regarding the breach.

The company is now reaching out to other entities in the industry to ask them to monitor, track and freeze all funds coming from the attacker’s address.

The firm has also reported the incident to law enforcing agencies in Singapore while recruiting a team of blockchain and digital security experts to assist them with their research regarding their network. The company wants to ensure that all other wallets are unaffected by the breach.