The post Massive Hack on Convergence: $210,000 Stolen in Minutes! appeared first on Coinpedia Fintech News
After millions of funds were lost in crypto in the month of July, the start of a new month brought a new hack to the crypto community. In a shocking event, decentralized finance protocol- Convergence got exploited out of $210,000. This has seriously rattled the crypto community.
Let’s explore how this attack happened and what impact it created.
The Exploit Uncovered
An unknown attacker found a big vulnerability in Convergence’s CvxRewardDistributor contract. The hacker minted 58 million $CVG tokens, then swapped them for 60 wrapped ether (WETH) and 15,900 crvFRAX stablecoins on Curve. At the time, CVG was trading at $0.1155. After the hack, it crashed to a shocking $0.000413.
QuillAudits, a top web3 security firm, said blockchain data on Etherscan shows the hacker converted the stolen funds to ether (ETH) and sent them to Tornado Cash, which is used to hide transaction details.
Financial Repercussions
The direct financial loss from the hack is about $210,000. But for CVG holders, it’s even worse. The token’s fully diluted value (FDV) was $17 million before the hack. That value disappeared almost instantly. The price of CVG just nosedived, causing panic among investors and shaking trust in the protocol.
Convergence quickly took the situation on their hand and warned users on X, telling them not to interact with the protocol until further notice.
Root Cause and Security Implications
The root cause was a vulnerability in the CvxRewardDistributor contract. This allowed the attacker to bypass input validation and mint tons of CVG tokens. This really shows why we need thorough smart contract audits and constant security checks in the DeFi space.
QuillAudits has been crucial in figuring out the details of the exploit. They’re working hard to give the community constant insights and recommendations.
Lessons for the DeFi Community
This exploit is another reminder of the risks in decentralized finance protocols. Everyone needs to stay vigilant, keep up with security news and only use well audited projects. As DeFi keeps growing, the complexity and frequency of attacks grow too, making robust security practices super important for all of us.
#News #Cryptonews #Hack [Source: Coinpedia]