Hackers stole $8.4M from Veritaseum ICO

Another hack of Ethereum-based ICO, see inside to learn more details
25 July 2017   2903
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.  

SEC to Unveil New List of Probable TON investors

One investor in this list is a ex-member of the managing board of the Bitcoin Foundation and partner of Ribbit Capital Mayer Malka
27 January 2020   477

Some names of large investors and the names of investment companies that could take part in the $ 1.7 billion token sale of the Telegram blockchain project became known, CoinDesk reportes with reference to documents issued by the US Securities and Exchange Commission (SEC) in the framework of the current proceedings.

One such investor is a former member of the managing board of the Bitcoin Foundation and partner of Ribbit Capital, Mayer Malka. He during the testimony at the beginning of the month mentioned Telegram CEO Pavel Durov.

Answering a question about whether Telegram is known for investors who can take on the role of validators in the TON PoS blockchain, Durov said:

We didn't put together a separate list of the purchasers who we would assume have experience in validating other networks, although it was obvious that certain investors… such as, for example, Micky Malka that we have discussed earlier, might… have experience in these processes of validation or at least were closely affiliated with parties that had experience in such processes.

 

Pavel Durov

Telegram CEO

In addition, Telegram Vice President Ilya Perekopsky, in one of his reports, named David Jan, the founder of ABBYY, a linguistic solutions development company, among potential investors. According to the correspondence published by the SEC, Ian asked Perekopsky if he could get an allocation in the ICO if he contacted Telegram directly without intermediaries in January 2018. “100 percent,” replied Perekopsky.

Also, TON investors could become the American funds Kleiner Perkins, Fortress, Draper Dragon, Dragoneer, DRW Holdings and Redpoint. This follows from the testimony declarations affixed by the SEC to the recent petition. In eight declarations, TON investors explain what prompted them to purchase Gram tokens. Company names have been removed from all documents, but they have remained in the file names. Sources familiar with the situation confirm that they really could take part in the ICO.

Most of the witnesses interviewed by the SEC indicated that they were interested in the possibility of supporting the Telegram project in the ICO TON, while the messenger itself does not accept funding for its main business. The announced investment amounts are on average $ 5-10 million. At the same time, Kleiner Perkins was initially offered an allocation of $ 15 million, but the company managed to agree on a twice as large investment, it follows from the submitted documents.