Hackers stole $8.4M from Veritaseum ICO

Another hack of Ethereum-based ICO, see inside to learn more details
25 July 2017   1264
ICO

Initial coin offering (ICO) is a means of crowdfunding the release of a new cryptocurrency

Hijack of Ethereum-based ICOs continues. The blockhain startup from New York Veritaseum became the new victim of hackers, having lost more than $ 8 million, which were received by investors during the ICO.

Blockchain

Distributed database that is used to maintain a continuously growing list of records, called blocks

Veritaseum positions itself as a p2p platform focused on financial markets and capital flows without the involvement of intermediaries traditional for this segment of the industry.

Last weekend, the project team headed by Reggie Middleton, a famous American entrepreneur and founder of the Boom Bust Blog blog, conducted the initial placement of VERI tokens created on the basis of Ethereum (standard ERC20). During the campaign, Middleton noticed suspicious activity, as reported in the Slack-channel of the project. In the future, information about hacking Veritaseum also appeared on the BitcoinTalk forum.

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. 
Although I hate to see assets stolen, and I hate thieves, the incident proved both the resilient demand for our tokens and the utility of the decentralized exchange EtherDelta.
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.
 

Reggie Middleton 
Disruptor-in-Chief, BoomBustBlog & Veritaseum

However, according to Middleton himself, despite the fact that in dollar terms the stolen amount is quite impressive, and the hacker acted in a rather sophisticated way, for the project itself the damage was extremely insignificant (less than 0.07% of the total amount).

Ethereum

Is an open-source blockchain-based distributed computing platform featuring smart contract functionality, which facilitates online contractual agreements 

He also emphasizes that the stolen tokens belonged to Veritaseum, and none of the users suffered financial losses. In addition, says Middleton, the project does not need to buy these tokens, as the demand for them immediately compensated for all the losses.

At the same time, although Middleton also says that he knows what vulnerability the hacker took advantage of, he does not disclose additional details. However, he nevertheless made it clear that some corporate partners of Veritaseum may be involved in the incident, and that the company's lawyers will further investigate the incident.

Let's remember, that this is not the first Ethereum-based ICO hack meanwhile. Due to Parity hack, such project as:

lost a lot of money.  

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Top-3 Ongoing ICO 8th - 14th July Acc. to Our Readers

Let’s check which ongoing ICOs from 8th to 14th July are considered the best among our readers
16 July 2018   131

Our readers are dedicated cryptocurrency enthusiasts and fans of blockchain technology. We provide them with the ability to express their opinion regularly. Let’s check top three upcoming ICO according to our readers.

1. i-chain 

Insurance platform and ecosystem, which will transform world insurance industry. Platform which the will automate insurance business, which will run over blockchain to ensure transparency, which will be provided for free. I-chain will ease barriers for new players to tap the insurance market; it will allow insurance companies to significantly cut their costs and get access to new customers; it will allow consumers to get tailored insurance products at lower prices. Insurance companies will be able to develop and sell their own insurance products on the platform, saving a big chunk of operational costs by using the built-in functionality. Micro-businesses will be able to provide tailored services, such as a call center in a specific language or expertise in certain areas, and many more. Individuals will be able to provide small services as insurance brokers or emergency commissioners, and many others. Global and Independent software developers will be able to offer their applications and services to insurance companies on the platform’s internal marketplace, similar to the AppStore. Together, this will make insurance more affordable and fair and will stimulate the growth of the USD$4+ trillion global insurance market. Project has got positive feedback in media.

There's no info on the raised funds.

2. Smart City Eco 

Smart City Eco is targeting all mayor global economy industries, we want to provide smart solutions based on blockchain technology and target most lucrative. Tapping into global markets and multi-trilion dolars industry. Our platform will be solution for all mayor players in global online economy: Online-Shopping and E-Commerce worldwide is worth trilions of dollars, online gaming and gambling industry is a bilions of dollars industry, online gaming which has unlimited potencial, implemented in one online smart platform can bring a smart economy progress and development of new technology on top of it. On top of that add economy into the equation and you will create utopia for online consumers, with limited number of tokens, that can not be printed anymore on top of it and by number of tokens decreasing by burning the part of extra tokens, we have created solution for few of the worlds most prominent problems that is money, poverty, inequality in society. Help us join our journey.

There's no info on the raised funds.

3. LipChain 

Surfers with sponsors, unofficial competitions and year-round training habitat. 60m+ worldwide surfers will be able to earn tokens by simply practicing their favorite sport, can become champions faster and contribute to cleaner oceans in the process.

LipChain ICO
LipChain ICO

There's no info on the LipChain raised fund except pic above.

We will keep our eyes on these projects. Stay tuned!