After VeChain incurred a loss of one billion “VET” units due to a wallet breakout intended for the VET digital repurchase.
VeChain has applied for owners of the "Masternodes" contract to obtain approval to issue a "patch" to freeze the majority of pirated accounts.
Back in the case more than a week ago, VeChain admitted losing 1.1 billion VET coins.
Mr Sunny Lu, CEO of VeChain at the time reassured investors that the VeChain network is just as safe as ever.
But the incident highlighted the weakness of the institution's internal practices. In a broadcast from a channel on Periscope, "Lou" explained the conditions behind the hack.
He said that one of the team members responsible for overseeing the repurchase process did not follow the necessary procedures when creating the repurchase portfolio.
“Luo” expanded this and explained that the creation of this wallet was by accepting a compromising device through the key notation program, which enabled the hackers to obtain the private key information.
From there, the hacker transferred the cryptocurrency from the repurchase wallet to an account that he controlled.
He added:
The accident is the result of mismanagement of the responsible person, who did not follow the compliance protocol, who will bear the consequences of the internal management procedures.
Related platforms have been contacted with a blacklist of suspicious addresses, in order to prevent stolen deposits in order to prevent access to a crypto trading platform with a view to selling them.
However, the steering committee decided that more decisive action was needed to completely stop stolen currencies.
On December 18th, this committee issued a motion to contact all "Masternodes", with the aim of issuing a correction aimed at freezing these accounts.
Those “Masternodes” voted in agreement with the proposal.
As a result, the pirates lost control of the majority of the stolen money.
Currently, 469 addresses owned by thieves have been banned by "Masternodes", which have frozen nearly 727 million VET coins.
In addition, VeChain will continue to work with crypto trading platforms, regarding the recovery of the remaining stolen money.
Questions related to the extent of VeChain decentralization
The well-known fact that VeChain has ambitions to decentralize its program.
Plans are already underway to achieve this goal, for example the recent declaration that resulted in the decentralized governance model.
While many of VeChain's followers praised the project, they also praised the founder of "Sunny Lou" for their professional and critical approach to correcting the error. However, on the other hand, this further highlights the centrality of VeChain.
Although "Masternodes" voted to approve the implementation of the correction, it also meant that they could collude in the future with the VeChain network, although it was a far-fetched scenario, but it highlights the main authority of contract owners.
Moreover, for the VeChain project to have real value, it must be fair and decentralized in the full sense of the word.