The attacker exploited this flaw to mint and sell 58 million CVG tokens, valued at approximately $210,000.
In addition, the hacker siphoned off $2,000 in unclaimed staking rewards, further compounding the damage. The breach was made possible by a critical oversight in the smart contract’s code. Let’s explore more about what happened with Convergence
Hacker Exploits Vulnerability, CVG Token Value Collapses
On the day of the attack, around 3:00 am UTC, the hacker exploited the vulnerability, minting the CVG tokens and rapidly converting them into 60 wrapped-Ether and 15,900 Curve.fi FRAX. This swift conversion led to a dramatic collapse in the CVG token’s value, which is now trading at just $0.0004, with a market capitalization of $57,000.
Source: X
The incident highlights significant security concerns for DeFi protocols and underscores the importance of rigorous auditing and oversight. The oversight in Convergence’s smart contract, while intended for efficiency, had unintended consequences that left the protocol vulnerable to attack. The breach has had severe implications for the value of CVG tokens and the overall stability of the Convergence protocol.
Source: X
As Convergence investigates the breach and works to mitigate the damage, the incident serves as a cautionary tale for other DeFi projects. It emphasizes the need for thorough testing and review processes to ensure that smart contracts are secure and free from vulnerabilities. The protocol’s response will likely involve both technical and strategic measures to address the exploit and prevent future incidents.
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