Veritaseum loses $8.4M of ICO funds to hackers

New York startup Veritaseum is the latest victim of a hacking attack, in which it lost over $8 million it raised in its token sale drive.

Founder and CEO Reggie Middleton made the announcement in an online post on Monday. He wrote:

“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.

“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.”

Middleton further said that they decided against forking VERI, adding that “the amount stolen was miniscule (less than 00.07%) although the dollar amount was quite material.” He went on to say that the hack of few million dollars was “inconsequential”.

Speaking to ETHNews, Middleton said, "It's actually a small bump in the road,” adding that the team knows how the hack took place and has taken measures to prevent it from happening in the future.

The incident comes on the heels of the hacking attack on CoinDash token sale event in which it lost $7 million, followed by a theft of $30 million in ether from Parity multisig wallet.

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