On December 13, about 1.1 billion VET tokens worth around $6.3 million were stolen from a buyback address owned by the VeChain Foundation. Shortly after the hack, the foundation announced that it was working on measures to recover the stolen coins. This included working with crypto exchanges to stop the hacker from laundering the stolen loot.
However, attempts to recover the stolen funds have not been successful. The hacker managed to cart away about 373 million VET tokens worth around $2.2 million. However, that is all that the hacker might get from the stolen coins if a recent proposal is accepted.
A Vote on the Remaining Coins
Shortly after the hack, the VeChain Foundation released an emergency patch that blocked the 469 addresses where the hacker had moved the coins. These addresses hold the remaining 727 million VET tokens stolen by the hacker. For now, they are frozen. On December 24, VeChain Foundation announced that it would put the issue of the stolen coins to a vote. This will allow everyone who owns VET tokens to decide on what should be done with the stolen coins.
The goal is to ensure that the hacker will never be able to cash in his stolen coins. VeChain Foundation wants stakeholders to vote on making the emergency patch blockade on the coins permanent. If the vote is in the affirmative, the remaining 727 million VET tokens in the 469 addresses would be burned, erasing them from the VET blockchain. This will reduce the total number of VET tokens by 727 million tokens.
Those eligible to vote are those running Economic X Nodes, Economic Nodes, and Authority Masternodes. The vote is expected to occur in the next few days. Most experts expect that this vote will easily sail through. It could set the standard for how blockchain projects deal with hackers in the future.
A Solution to the Hacking Problem
For many years now, crypto hackers have managed to steal hundreds of millions of dollars with little consequence. This is because tracking the coins is usually impossible and the authorities in most jurisdictions do not have the tools to track down these hackers.
The issue of hacking has played a major role in helping to keep some major investors away from the crypto industry. This is because the risk of losing coins coupled with the lack of custody solutions is just too much for them. However, custody solutions are slowly making their way into the crypto sector. It is also worth noting that crypto exchanges are working more closely together to stop hackers from laundering their loot via their platforms.
Effect on VET Tokens
While the VET tokens lost some value following the announcement of the hack, it was not much. The price of VET tokens has remained stable. This latest action by the VET Foundation could even help to bolster confidence in the coins. Besides that, reducing the supply of the VET tokens in circulation could help to boost prices based on the law of supply and demand.
Image Source: VeChain Foundation Twitter