{"id":35289,"date":"2024-08-01T21:21:16","date_gmt":"2024-08-01T21:21:16","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/defi-protocol-convergence-hit-by-major-hack-cvg-token-collapses\/"},"modified":"2024-08-01T21:21:16","modified_gmt":"2024-08-01T21:21:16","slug":"defi-protocol-convergence-hit-by-major-hack-cvg-token-collapses","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/defi-protocol-convergence-hit-by-major-hack-cvg-token-collapses\/","title":{"rendered":"DeFi Protocol Convergence hit by major hack, CVG token collapses"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/08\/DeFi-Protocol-Convergence-hit-by-major-hack-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/08\/DeFi-Protocol-Convergence-hit-by-major-hack-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/08\/DeFi-Protocol-Convergence-hit-by-major-hack-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/08\/DeFi-Protocol-Convergence-hit-by-major-hack-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>Decentralized governance hedge fund platform Convergence exploited.<\/li>\n<li>58M CVG tokens minted and swapped.<\/li>\n<li>CVG token value plunged 99% from $0.12 to $0.0004 following the hack.<\/li>\n<\/ul>\n<p>On Thursday, the decentralized finance (DeFi) protocol Convergence experienced a severe breach, resulting in a dramatic collapse of its CVG token.<\/p>\n<p>The exploit involved the creation of 58 million CVG tokens, which were then exchanged for approximately $200,000 worth of wrapped Ether (wETH) and crvFRAX stablecoin.<\/p>\n<h2>Hacker exploited a vulnerability in Convergence\u2019s codebase<\/h2>\n<p>This malicious activity was carried out using a vulnerability within the protocol\u2019s codebase, according to web3 security firm QuillAudits.<\/p>\n<p>The attacker leveraged this flaw to mint a massive amount of CVG tokens, subsequently swapping them for wETH and crvFRAX through Curve\u2019s liquidity pools. Following the token exchange, the attacker converted the funds into Ether (ETH) and transferred them to Tornado Cash, a privacy tool designed to obscure transaction trails.<\/p>\n<p>This breach led to an estimated $210,000 in financial losses, while CVG token holders faced a catastrophic decline in the token\u2019s value.<\/p>\n<p>Before the attack, CVG had a fully diluted valuation of $17 million. However, the token\u2019s price plummeted by 99% in the Curve liquidity pools, dropping from $0.12 to a fraction of a cent, trading at $0.0004.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Frens, <a href=\"https:\/\/twitter.com\/Convergence_fi?ref_src=twsrc%5Etfw\">@Convergence_fi<\/a> was just hit by an exploit resulting in a loss of around $210,000. \ud83d\udea8<\/p>\n<p>The attacker minted 58 million <a href=\"https:\/\/twitter.com\/search?q=%24CVG&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$CVG<\/a> tokens &amp; swapped them for 60 WETH &amp; 15.9k crvFRAX.<\/p>\n<p>The price of <a href=\"https:\/\/twitter.com\/search?q=%24CVG&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$CVG<\/a> at the time of exploit was $0.1155. It dumped 99% and is currently at $0.000413\u2026 <a href=\"https:\/\/t.co\/43MJGjQg2i\">pic.twitter.com\/43MJGjQg2i<\/a><\/p>\n<p>\u2014 QuillAudits \u27a1\ufe0f Web3 Security \ud83e\udd77\ud83d\udee1\ufe0f (@quillaudits_ai) <a href=\"https:\/\/twitter.com\/quillaudits_ai\/status\/1819049207061225601?ref_src=twsrc%5Etfw\">August 1, 2024<\/a><\/p>\n<\/blockquote>\n<h2>Convergence asks users to pause activities on the platform<\/h2>\n<p>In response to the incident, Convergence has advised users to refrain from interacting with the protocol to avoid further risk.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udea8 URGENT COMMUNICATION \ud83d\udea8<\/p>\n<p>Convergence has been hacked. Please don&#8217;t interact with the protocol.<\/p>\n<p>\u2014 Convergence (@Convergence_fi) <a href=\"https:\/\/twitter.com\/Convergence_fi\/status\/1819032027842113959?ref_src=twsrc%5Etfw\">August 1, 2024<\/a><\/p>\n<\/blockquote>\n<p>The protocol\u2019s team and security experts are currently investigating the breach to prevent future vulnerabilities and mitigate the damage caused by the exploit.<\/p>\n<p>This incident underscores the ongoing risks associated with <a href=\"https:\/\/coinjournal.net\/news\/tag\/defi\/\">DeFi<\/a> protocols and the importance of robust security measures in safeguarding digital assets.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/defi-protocol-convergence-hit-by-major-hack-cvg-token-collapses\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Decentralized governance hedge fund platform Convergence exploited. 58M CVG tokens minted and swapped. CVG token value plunged 99% from $0.12 to $0.0004 following the hack. On Thursday, the decentralized finance (DeFi) protocol Convergence experienced a severe breach, resulting in a dramatic [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":35290,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/35289"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=35289"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/35289\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/35290"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=35289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=35289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=35289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}