Convergence

Compound

Ronin

Tornado

Convergence Finance team has made an unexpected move by contacting the hacker who exploited the protocol, resulting in a $212,000 loss.&nbsp;
On August 1st, a flaw in the CvxRewardDistributor was used to mint 58 million CVG tokens, which were then sold, leading to a drastic drop in the token’s value by over 99%.
On August 6th, Convergence Finance sent a message to the attacker through a transaction on the Ethereum network.
The message read: “Hey, Convergence Finance would like to discuss with you about the bug you found and successfully exploited on August 1st. Congratulations on identifying it. We believe you acted as a white hat, and we would like to discuss with you about the funds (65.8 ETH) that you took and sent through TornadoCash.”&nbsp;
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfLLuX11Orf2ALXQt0J5wCD26hlIf-XK2RORf1I75z6aoLTjRYXwAEJM1a-J0nfYwKErnSYCrWPiAF97BG72IVlEf3vihas8KMrKQtWqotmF9qeW8350MvOUS3wYyMLTOqZzmyxeszwOU96uVmbEyrH2Kds?key=33m-hYphU_Zf2rAiHI5t_A" alt="AD 4nXfLLuX11Orf2ALXQt0J5wCD26hlIf XK2RORf1I75z6aoLTjRYXwAEJM1a J0nfYwKErnSYCrWPiAF97BG72IVlEf3vihas8KMrKQtWqotmF9qeW8350MvOUS3wYyMLTOqZzmyxeszwOU96uVmbEyrH2Kds?key=33m hYphU Zf2rAiHI5t A">
 <figcaption class="wp-element-caption">
 Convergence Finance Message to the Exploiter | Image Source: <a href="http://etherscan.io" target="_blank" rel="noopener noreferrer nofollow">Etherscan.io</a>
 </figcaption>
</figure>
The message included a contact email and an Ethereum address for the return of the funds, with a warning that if there was no response within 48 hours, further action would be taken.
The attack on August 2nd not only led to the sale of the <a href="https://www.cryptotimes.io/2024/08/02/hacker-steals-210000-in-cvg-tokens-from-convergence/" rel="noopener noreferrer nofollow">minted</a> CVG tokens for $210,000 but also saw the theft of $2,000 in unclaimed rewards from Convex, which belonged to Convergence users. The stolen funds were deposited into Tornado Cash, a crypto-mixing service, to obscure the transaction history.
This exploit is just one of many attacks in the Web3 space recently. According to a report from PeckShield on August 1st, over $266 million in cryptocurrency was lost to similar exploits in July alone. The largest of these attacks targeted the Indian crypto exchange WazirX, resulting in losses of over $230 million.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <a href="https://twitter.com/hashtag/PeckShieldAlert?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#PeckShieldAlert</a> July 2024 witnessed 16 hacks in the crypto space, resulting in ~$266 million (w/o Compound Potential Governance Attack)) in losses. Top 10 Hacks:<a href="https://twitter.com/hashtag/WazirX?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#WazirX</a>: $230 million (CeFi)<a href="https://twitter.com/hashtag/Compound?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Compound</a>: $24 million (Potential Governance Attack)<a href="https://twitter.com/hashtag/LI?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#LI</a>.FI: $9.73 million<a href="https://twitter.com/hashtag/Bittensor?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bittensor</a>:… <a href="https://t.co/jsmP9qLuqR" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/jsmP9qLuqR</a>— PeckShieldAlert (@PeckShieldAlert) <a href="https://twitter.com/PeckShieldAlert/status/1818853720861618634?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 1, 2024</a>
 </blockquote>
 </div>
</figure>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/08/06/white-hat-hacker-suspected-in-9-8-million-ronin-eth-exploit/" rel="noopener noreferrer nofollow">White Hat Hacker Suspected in $9.8 Million Ronin ETH Exploit</a>
</blockquote>

Convergence Finance Sends Negotiation Message to Hacker

The Crypto Times

Other articles published on Aug 6, 2024

Shiba Inu’s 28% surge: Will SHIB keep its bull run after a change in path?

BlackRock Sees Low Demand for Other Cryptos Other Than Bitcoin and Ethereum

Dogecoin (DOGE) Whales Adds New DOGE Competitor Mpeppe (MPEPE) For Major Profits

Compound Finance Faces Scrutiny After Controversial Proposal 289 Passes

Crypto Scams on the Rise: Fake Video Conferencing Apps Target Job Seekers for Crypto

Australia’s Big Banks Block Crypto Payments Amid Rising Crypto Popularity

Join our free newsletter for daily crypto updates!