Hackers stole $8.4M from Veritaseum ICO

Another hack of Ethereum-based ICO, see inside to learn more details
25 July 2017   1807
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.  

DFINITY to Postpone Internet Computer Launch

The project is currently assessing the time frame for the completion of the MVP
14 December 2018   67

The blockchain project Dfinity reported in its blog postponing the launch of its main product.

Previously, Dfinity chief scientist Dominic Williams said that his company intends to create an “Internet computer that will become cloud 3.0”, compete with Google Cloud and Microsoft Azure, and also change the face of the blockchain industry.

According to him, the project team is developing a technology that has 150 higher performance than Ethereum blockchain and 900 times - Bitcoin. In essence, the project creates a “giant Internet computer”, whose work will be supported not by one company, but by all participants of the Dfinity protocol.

Initially, the release of a minimum viable product (MVP) was planned for the first quarter of 2019. However, according to company representatives, working on a trimmed version may slow down progress in creating a complete product.

The project is currently assessing the time frame for the completion of the MVP. Also, noted in Dfinity, before the end of the first quarter a new set of development tools (SDK) will be released, which will shed light on the future plans of the company.

In August, the Dfinity Foundation attracted $ 102 million of investments in the framework of a closed tokensale. Prior to this, at the beginning of the year, the Dfinity Foundation raised $ 61 million from Andreessen Horowitz and Polychain Capital.