The VeChain Foundation, the nonprofit behind the construction of VeChain’s public blockchain platform, announced that their buyback address was compromised on Friday at 12:27 p.m. (CET).
1.1 billion professional education tokens totaling approximately $ 6.7 million have been transferred to the address 0xD802A148f38aBa4759879c33E8d04deb00cFB92b.
The company believes the hack was the result of human control by its finance and audit teams. They said it did not reflect any inherent flaw in its standard practices or hardware wallet solutions.
“Security breaches were most likely caused by the misconduct of a team member on our finance team who created the buyback account without properly following the standard procedure approved by the Foundation, and our audit team found this misconduct due to human error,” the announcement said. “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.”
VeChain was founded in Singapore in 2015 and has a blockchain-based credit platform that customers can use to determine the quality of the products purchased through supply chain analysis. The platform has two tokens – VeChain Token (VET) and VeThor Token (VTHO) – the first being used for payments over the network and the second being used for executing smart contracts and running applications on the blockchain.
Since the hack, the VeChain team has compiled a list of addresses associated with the hacker’s address and asked all exchanges to flag and freeze any funds originating from those addresses. The company has also reported the incident to Singapore law enforcement agencies and enlisted cybersecurity firm Hacker to find out details of the hack.
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