Third recent Ethereum related breach has happened, this time the target being the Veritaseum platform that lost around $8.4 million in Ethereum in a data breach that happened during an Initial Coin Offering (ICO) on Sunday.
Reggie Middleton, the founder of Veritaseum, published an analysis report in which he said that the hackers’ attack was of the sophisticated nature and that they managed to steal $8.4 million in VERI tokens, which they then split in two and transferred to two different addresses. After that, the hackers in question sold the stolen VERI tokens in exchange for Ethereum and once again, split the amount in two and sent to two different addresses.
This incident, although uncomfortable for us, shows that the numbers listed are real and the market for VERI is real https://t.co/df79EMulC1
— Veritaseum UltraCoin (@Veritaseuminc) July 24, 2017
In the analysis report, Middleton also says that he believes that they’ve been hacked by a group due to the sophisticated nature of the attack.
He also wrote that while the incident wasn’t fun in the slightest, it did prove that there is a demand for their tokens and the utility of the decentralized exchange EtherDelta. He pointed out that the hackers managed to exchange the whole $8.4 million worth of tokens within a few hours without the public knowing anything of the last traction.
Middleton continues by saying that they had an option to fork VERI, but chose not to due to how small the amount was stolen actually, less than 00.07%, although the dollar amount was quite material.
In the end, the Veritaseum’s founder stated that their tokens are software that represents their knowledge, advisory and consulting skill, as well as products and capabilities and that without the Veritaseum team, the tokens are literally worthless. In case someone confiscated the all 100% of the available tokens, all the team would need to do is not stand behind them and recreate the token. Because of the fact that the company is selling capabilities and not currency or security, that is the reason why the team itself is what powers the value behind the Veritas token.
The investigation of the hack is still ongoing, and so far there is a limited amount of information available. What is concerning is the fact that this has been the third hack of this kind in the time period of one week during which hackers managed to steal a large amount of Ethereum. Israeli cryptocurrency social trading start-up CoinDash announced on 17th July that they’ve been robbed of $7 million worth of Ethereum. And on 20th July, $32 million was stolen from 3 multisig wallets belonging to Parity Technologies, a smart contract coding firm.