After the exposure of VeChain To lose one billion units of “VET” Due to the hack of the wallet dedicated to the process of buying back VET cryptocurrencies.

The VeChain Foundation has applied to Masternodes to obtain Approval to issue a patch To freeze the majority of hacked accounts.

Public disclosure of the buyback address incident including recent updates, next steps, and internal management decision.

– VeChain Foundation (@vechainofficial) December 22, 2019

Back in the case, more than a week ago, the VeChain Foundation admitted the loss of 1.1 billion VET coins.

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VeChain CEO Sunny Lu at the time reassured investors that the VeChain network is just as secure as it has always been.

But the incident highlighted the weakness of the institution’s internal practices. In a broadcast from Periscope, Lou explained the circumstances behind the hack.

Live broadcast of Sunny Lu, Vechin

– Sunny LU, VeChain (@sunshinelu24) December 14, 2019

He said that a member of the team responsible for overseeing the buyback process, did not follow the necessary procedures when creating a buyback wallet.

Lou expands on this by explaining that the wallet was created by accepting a hacked device via keylogging software, enabling the hackers to obtain the private key information.

From there, the hacker transferred the cryptocurrency from the buyback wallet to an account he controlled.

He added:

The incident is caused by mismanagement of the responsible person, who did not follow the compliance protocol, will bear the consequences of internal management actions.

The relevant platforms were contacted with a blacklist of suspicious addresses, in order to block stolen deposits with the aim of blocking access to a cryptocurrency exchange with the intention of selling them.

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However, the Steering Committee decided that more decisive action was needed to fully halt the stolen coins.

On December 18, this committee issued a proposal to contact all Masternodes, with the aim of issuing a patch to freeze these accounts.

These “Masternodes” voted in agreement with the proposal.

As a result, the hacker lost control of the majority of the stolen funds.

Currently, 469 thieves-owned addresses have been blocked by Masternodes, which has frozen about 727 million VET coins.

In addition, the VeChain Foundation will continue to work with cryptocurrency exchanges, regarding the recovery of the remainder of the stolen funds.

Questions Regarding How Decentralized VeChain

The well-known fact is that VeChain has ambitions to decentralize its platform.

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There are plans already underway to achieve this goal, for example the recent announcement that resulted in the decentralized governance model.

While many VeChain followers praised the project, they also praised the founder of Sunny Lou for their professional and decisive approach to remedying the error. On the other hand, this highlights the centrality of VeChain.

Although Masternodes voted to approve the implementation of the patch, it also means that in the future they could collude with the VeChain network, although it is a far-fetched scenario, it highlights the power of the master nodes owners.

What’s more, for VeChain to have real value, it must be honest and decentralized in the truest sense of the word.

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Learn about the VeChain project and the project’s digital currency (VET)