Veritaseum has confirmed today that a hacker was able to steal $8.4 million from the Ethereum platform’s ICO (Initial Coin Offerings). The anonymous hacker was able to steal VERI tokens during the ICO. Because the ICO was ongoing and the tokens were in demand, the hacker immediately sold them to other buyers.
“ICO (Initial Coin Offerings) is an unregulated means of crowdfunding. Early ICOs were for funding development of new cryptocurrency instruments, but modern ICOs serve any purpose. Generally, tokens are sold to raise money, with token existence and behavior defined by mathematical contract algorithms. Unlike an initial public offering (IPO), acquisition of the tokens is not government regulated, and may or may not grant ownership or other rights in the venture.”
Until Now, the attack is unclear. It seems that some “advanced attack” was used, yet the technical team did not disclose details. Unfortunately for the platform, recovering the stolen funds will be nearly impossible. These tokens will be dumped across multiple exchanges in the near future.
Reggie Middleton (The founder of Veritaseum) said:
“We were hacked, possibly by a group. The hack seemed to be very sophisticated, but there is at least one corporate partner that may have dropped the ball and be liable. We’ll let the lawyers sort that out, if it goes that far.”“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.”
