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.
Explanation of what happened last night when Veritas price halved. A perfect opportunity to describe what VERI is. https://t.co/WudrUMbz5f
— ReggieMiddleton (@ReggieMiddleton) July 24, 2017
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.
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).
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.