VeChain hack aftermath: CFO resigns, network to vote on burning stolen tokens

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Following the theft of $6.5 million worth of VET tokens from its buyback wallet, blockchain platform VeChain announced that it will be taking several measures to ensure the network's safety.

The CFO took full responsibility for the attack and resigned from his position, while the company said the final decision as to what to do with the stolen funds will be left to the community.

VeChain, an enterprise-focused blockchain ecosystem, has announced that it will be implementing measures that will make the network more secure and resistant to hacks.

At the time, the Singapore-based company said the hack was most likely a result of a human error and that it was working on improving the protocols that enabled such an error to occur.

VeChain released VeChainThor v1.1.5 two days after the hack, which allowed the network's Authority Masternode to vote on the issue.

"Currently, 469 addresses owned by the thief have been blocked by the Authority Masternodes, which froze about 727 million VETs," VeChain sad in the announcement.

If the community was to vote on burning the addresses, the 727 million stolen VET tokens would be burnt and forever subtracted from both the total and the circulating supply, VeChain said in its Dec. 22 statement.

The company acknowledged that the responsibility for the hack falls on its CEO Sunny Lu, which is why he also agreed to accept only 50 percent of his compensation for 2020.

The positive comments the VeChain team got for handling the hack well were enough to convince everyone to put their trust back into the company.

Many users on Reddit said that while the blacklisting of addresses associated with the hack is a good temporary remedy, it revealed just how centralized VeChain is.