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">
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 Convergence Finance Message to the Exploiter | Image Source: <a href="http://etherscan.io" target="_blank" rel="noopener noreferrer nofollow">Etherscan.io</a>
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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.
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 <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>
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<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

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