Pierluigi Paganini July 25, 2017

A few days ago, a hacker stole nearly $32 Million worth of Ethereum from wallet accounts by exploiting a critical flaw in the Parity’s Ethereum Wallet software. A third cyber heist of $1 Million worth of Ether and Bitcoins affected the currency exchange Bithumb earlier June.

Back to the present, Veritaseum confirmed the security breach, a hacker stole $8.4 Million in Ether (ETH) from its ICO on July 23. Further investigation is ongoing, it is still unclear which vulnerability was exploited by the hacker.

“We were hacked, possibly by a group. The hack seemed to be very sophisticated, but there’s at least one corporate partner that may have dropped the ball and be liable. We will let the lawyers sort that out if it goes that far.” said Veritaseum founder Reggie Middleton.

“The hacker(s) made away with $8.4M worth of tokens, and dumped all of them within a few hours into a heavy cacophony of demand. This is without the public knowing anything about our last traction. 

I would like to make it known that we had the option to fork VERI, but chose not to. At the end of the day, the amount stolen was miniscule (less than 00.07%) although the dollar amount was quite material.”

Middleton speculates that an unnamed third-party company may be responsible for the attack. According to Middleton, due to the high demand of the VERI tokens during the ICO held over the weekend, the hacker first managed to steal those tokens and then immediately sold them to other buyers “within a few hours.”

The hacker first dumped the stolen funds into two separate Ethereum wallets and then moved them to other accounts.

The hacker has stolen 37,000 VERI tokens out of 100 Million in the cyber heist, this means that the event will not impact ICO investors.