The VeChain Foundation is viral in the altcoin news and rumors as it updates the cryptocurrency community with new details on the case with its stolen funds. Many people think that it is amazing how VeChain tracked and froze more than $6 million which was stolen from it in tokens.
Following the agreement of the Authority Masternodes, by a way of voting VeChain released a patch to freeze the majority of the hacker’s accounts – something that was officially published on Twitter, too.
A little over a week ago, we could see how VeChain did all of this. After admitting to the theft of 1.1 billion VET tokens, the CEO of the company Sunny Lu quickly reassured investors that the network is as secure as ever. Even though the VeChain news and price updates then showed a minus, the incident finished well and the stolen funds were frozen.
A Periscope broadcast hosted by Lu had the CEO stating and explaining the circumstances behind the hack. The company was transparent about everything and as the CEO said, a member of the team responsible for overseeing the buyback process did not follow the procedures when creating the buyback wallet.
Lu expanded on this and said how VeChain tracked and froze all the stolen funds which were moved away from the company through a trojan infected machine with keylogging software. He said that the hacker obtained private key information and from there, he transferred cryptocurrency assets out of the buyback wallet and into an account that he controls.
“It’s caused by a mis-mangement action… The responsible person, who did not follow compliance protocol, will hold the consequence of internal management actions.”
The cryptocurrency community saw how VeChain managed to deal with all of this – and praised the company for its quick response and transparent approach to the entire matter. By all accounts, it seems like their reputation still remains intact even after the stolen funds.
“During the last AMA session, a couple of weeks ago, I was just talking about one of the major challenges to VeChain, which is the internal management. And yesterday, unfortunately we just had a really big lesson,” Lu said.
Yesterday, we could even see an update by the VeChain Foundation on the buyback wallet hack. As a result of everything, the hacker has lost control over the majority of the stolen funds.
“Currently, 469 addresses owned by the thief have been blocked by the Authority Masternodes, which froze about 727 million VETs,” the latest update noted.
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