- Decentralized governance hedge fund platform Convergence exploited.
- 58 million CVG tokens had been created and exchanged.
- The worth of the CVG token dropped by 99% from $0.12 to $0.0004 after the hack.
On Thursday, decentralized finance (DeFi) protocol Convergence skilled a critical breach that resulted within the dramatic collapse of its CVG token.
The exploit concerned the creation of 58 million CVG tokens, which had been later exchanged for Wrapped Ether (wETH) and the crvFRAX stablecoin value round $200,000.
Hacker exploited a vulnerability in Convergence’s codebase
In response to Web3 safety agency QuillAudits, this malicious exercise was carried out by exploiting a weak point current within the protocol’s codebase.
The attacker exploited this vulnerability to create a considerable amount of CVG tokens, later changing them into wETH and crvFRAX by way of Curve’s liquidity pool. After the token change, the attacker transformed the funds into Ether (ETH) and transferred them to Twister Money, a privateness instrument designed to cover transaction traces.
The breach resulted in monetary losses estimated at $210,000, whereas CVG token holders suffered a big drop within the worth of their tokens.
Earlier than the assault, CVG had a completely diluted valuation of $17 million. Nonetheless, the token’s value within the Curve liquidity pool dropped by 99%, dropping from $0.12 to a fraction of a cent, buying and selling at $0.0004.
France, @convergence_fi Simply fell sufferer to an exploit that resulted in losses of roughly $210,000.
The attacker made $ 58 million $cvg tokens and swapped them for 60 WETH and 15.9k crvFRAX.
The worth of $cvg It was $0.1155 on the time of the exploit. It fell 99% and is presently at $0.000413… pic.twitter.com/43MJGjQg2i
– QuillAudits ➡️ Web3 Safety 🥷🛡️ (@quillaudits_ai) August 1, 2024
Convergence asks customers to cease actions on the platform
In response to the incident, Convergence has suggested customers to chorus from interacting with the protocol to keep away from additional dangers.
🚨 INSTANT COMMUNICATION 🚨
Convergence has been hacked. Please don’t work together with the protocol.
— Convergence (@Convergence_fi) August 1, 2024
The protocol’s crew and safety specialists are presently investigating the breach to stop future vulnerabilities and reduce injury brought on by exploitation.
This incident highlights the risks that exist at present DeFi The significance of robust safety measures in defending protocols and digital belongings was highlighted.
