- Decentralized governance hedge fund platform Convergence is being exploited.
- 58 million CVG tokens have been issued and exchanged.
- Following the hack, the worth of the CVG token fell 99%, from $0.12 to $0.0004.
A big breach occurred within the decentralized finance (DeFi) protocol Convergence on Thursday, resulting in a dramatic collapse of the CVG token.
The assault concerned the creation of 58 million CVG tokens, which have been then exchanged for about $200,000 value of wrapped Ether (wETH) and the crvFRAX stablecoin.
Hackers exploit vulnerabilities in Convergence's codebase
Based on Web3 safety agency QuillAudits, the malicious exercise was carried out by exploiting a vulnerability throughout the protocol's codebase.
The attackers exploited this flaw to mint massive quantities of CVG tokens, which they then exchanged for wETH and crvFRAX by way of Curve's liquidity pool. After the token trade, the attackers transformed the funds into Ether (ETH) and transferred them to Twister Money, a privateness device designed to cover the traces of transactions.
The breach resulted in an estimated monetary lack of $210,000 and triggered CVG token holders to face a devastating drop of their token worth.
Earlier than the assault, CVG's absolutely diluted valuation was $17 million, however the token's value plummeted 99% within the Curve liquidity pool, dropping from $0.12 to lower than a cent, buying and selling at $0.0004.
Buddies, @convergence_fi The exploit resulted in a lack of roughly $210,000.
58 million attackers $CVG I purchased the token and exchanged it for 60 WETH and 15.9k crvFRAX.
The value is $CVG The value on the time of exploitation was $0.1155. It has fallen 99% and is now at $0.000413… pic.twitter.com/43MJGjQg2i
— QuillAudits ➡️ Web3 Safety 🥷🛡️ (@quillaudits_ai) August 1, 2024
Convergence is asking customers to droop exercise on the platform.
Following the incident, Convergence suggested customers to chorus from interacting with the protocol to keep away from additional danger.
🚨 Emergency Contact 🚨
Convergence has been hacked. Don't mess with the protocol.
— Convergence (@Convergence_fi) August 1, 2024
The protocol's crew and safety consultants are at the moment investigating this breach to stop future vulnerabilities and mitigate the injury attributable to this exploit.
This incident highlights the continued dangers related to DeFi protocols and the significance of sturdy safety measures to guard digital property.
