- Decentralized governance hedge fund platform Convergence exploited.
- 58M CVG tokens minted and swapped.
- CVG token price plunged 99% from $0.12 to $0.0004 following the hack.
On Thursday, the decentralized finance (DeFi) protocol Convergence skilled a critical breach, leading to a dramatic cave in of its CVG token.
The exploit concerned the introduction of 58 million CVG tokens, which have been then exchanged for about $200,000 value of wrapped Ether (wETH) and crvFRAX stablecoin.
Hacker exploited a vulnerability in Convergence’s codebase
This malicious process used to be performed the use of a vulnerability throughout the protocol’s codebase, in keeping with web3 safety company QuillAudits.
The attacker leveraged this flaw to mint an enormous quantity of CVG tokens, therefore swapping them for wETH and crvFRAX via Curve’s liquidity swimming pools. Following the token change, the attacker transformed the price range into Ether (ETH) and transferred them to Twister Money, a privateness instrument designed to difficult to understand transaction trails.
This breach ended in an estimated $210,000 in monetary losses, whilst CVG token holders confronted a catastrophic decline within the token’s price.
Sooner than the assault, CVG had a completely diluted valuation of $17 million. On the other hand, the token’s worth plummeted via 99% within the Curve liquidity swimming pools, shedding from $0.12 to a fragment of a cent, buying and selling at $0.0004.
Frens, @Convergence_fi used to be simply hit via an exploit leading to a lack of round $210,000. 🚨
The attacker minted 58 million $CVG tokens & swapped them for 60 WETH & 15.9k crvFRAX.
The cost of $CVG on the time of exploit used to be $0.1155. It dumped 99% and is lately at $0.000413… percent.twitter.com/43MJGjQg2i
— QuillAudits ➡️ Web3 Safety 🥷🛡️ (@quillaudits_ai) August 1, 2024
Convergence asks customers to pause actions at the platform
In keeping with the incident, Convergence has steered customers to chorus from interacting with the protocol to steer clear of additional chance.
🚨 URGENT COMMUNICATION 🚨
Convergence has been hacked. Please do not have interaction with the protocol.
— Convergence (@Convergence_fi) August 1, 2024
The protocol’s staff and safety mavens are lately investigating the breach to stop long term vulnerabilities and mitigate the wear led to via the exploit.
This incident underscores the continuing dangers related to DeFi protocols and the significance of strong safety features in safeguarding virtual property.