Vechain Hack has, decides the consequences: Community

After the theft of VET Tokens to the value of $ 6.5 million from the Buy-Back program, the Blockchain platform VeChain has announced that it will take several actions to better ensure the safety of the network. The CFO took over the full responsibility for the attack and resigned from his Post, while the company said that the final decision of what to do with the stolen funds, leaving it to the community.

VeChain, a company that is geared to the Blockchain Ecosystem, has announced that it will implement measures that will make the network a safer and more resilient against hackers. The announcement, on 22. December, it was published on Medium, was the result of the largest theft, the network has experienced. Little more than a week, unidentified hackers stole 1.1 billion VET-Token in the value of approximately $ 6.5 million from a Buy-Back Wallet of the company. The Singapore-based company said that the Hack was most likely the result of a human error and that it worked on the improvement of the protocols to avoid such errors in the future.

The quick response of the company to the Problem included the cooperation with exchanges, such as the Binance, Huobi, Bitfinex, and Bittrex to put all the Hack-related addresses on a black list, what prevented the hackers to throw the Token onto the market. In the case of a fixed Supply of 86.7 billion VET Token the Hack could mean a loss of a per cent, of the circulating Supply of VeChain.

One of the of the company the proposed measures, the complete blocking of Hacker-controlled address. VeChain published, therefore, in consequence of VeChainThor V. 1.1.5, two days after the Hack, and gave the Authority Masternode in the network the opportunity to discuss the Update to vote. This master node to be agreed and activated the Update.

What’s next?

The final decision on the fate of the blocked addresses will, however, take VeChain community. All members of the VET Ecosystem can vote on whether the Patch VeChainThor v1.1.5 imported Blacklist to implement or not. If the community over the Burning of the addresses will be voting, would be burned, the 727 million stolen VET tokens, and for both of the total amount, as well as from the circulating supply destroyed, said VeChain in its Declaration of 22. December.

As Most expect, that the municipality agrees for destruction, will have to take the company in a serious financial hit. In order to preserve his reputation and to dampen the financial blow, is the chief financial officer of the company, Jay Zhang, from his function. Zhang will also waive his candidacy for the election of the steering Committee 2020 and to half of his compensation for the next year.

However, the company acknowledged that the responsibility for the Hack falls on its CEO, Sunny Lu, which is why he also agreed to accept only 50 percent of his remuneration for the year 2020. However, the positive comments received by the VeChain Team for the good execution of the Hacks, were sufficient to convince all, to give the company back to trust. Many users of Reddit, said that the Blacklisting of addresses that are associated with the Hack, be a good temporary workaround, but it’ll show how centralized VeChain is.

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