Convergence

DeFi

<h4><strong>The attacker exploited this flaw to mint and sell 58 million <a href="https://www.coingecko.com/en/coins/convergence-finance" target="_blank" rel="noopener">CVG tokens</a>, valued at approximately $210,000. </strong></h4> 
<p>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</p> 
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    <h5><strong>Hacker Exploits Vulnerability, CVG Token Value Collapses</strong></h5> 
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   According to a <a href="https://medium.com/@cvg_wireshark/post-mortem-08-01-2024-e80a49d108a0" target="_blank" rel="noopener">recent post-mortem</a> by Wireshark, an essential line of code was accidentally removed during a series of audits. This line, intended for gas optimization, inadvertently allowed the attacker to exploit the contract’s claimMultipleStaking function, facilitating the minting of the CVG tokens.
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<p>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.</p> 
<p><img decoding="async" class="wp-image-147274 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxbcbgfhhyjjy-300x262.jpg" alt="" width="451" height="394" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxbcbgfhhyjjy-300x262.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxbcbgfhhyjjy.jpg 393w" sizes="(max-width: 451px) 100vw, 451px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/peckshield/status/1819032859283186120" target="_blank" rel="noopener">X</a></strong></h6> 
<p>The incident highlights significant security concerns for DeFi protocols and underscores the importance of rigorous auditing and oversight. The oversight in <a href="https://x.com/Convergence_fi" target="_blank" rel="noopener">Convergence’s smart contract</a>, 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.</p> 
<p><img decoding="async" class="wp-image-147276 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/cxvfggfhhggh-296x300.jpg" alt="" width="454" height="461" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/cxvfggfhhggh-296x300.jpg 296w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/cxvfggfhhggh.jpg 393w" sizes="(max-width: 454px) 100vw, 454px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/Convergence_fi/status/1819175051583017479" target="_blank" rel="noopener">X</a></strong></h6> 
<p>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.</p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/convergence-defi-protocol-hit-by-210k-exploit/">Convergence DeFi Protocol Hit by $210K Exploit</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Convergence DeFi Protocol Hit by $210K Exploit

Altcoin Buzz

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