According to a statement made by cryptocurrency security company PeckShield, the altcoin project called Convergence (CVG) was subjected to a major hack attack.
According to the statement, hackers found a security vulnerability in the system and used it to freely print 58 million new CVG tokens. The hackers then sold these tokens for 60 WETH and 15,900 crvFRAX. This means that the total loss in the hacking incident is approximately 210 thousand dollars.
When the data is examined, it is observed that the CVG price decreased by 99.71% after the token sales. The total market value of the cryptocurrency project has decreased to only 376 dollars at the time of writing this article.
The price of the token, which was traded at $0.1243 before the attack, is currently $0.000413.
The vulnerability was reportedly caused by a bug in part of the CvxRewardDistributor contract. This contract is normally responsible for not verifying untrusted user reward claims.
The Convergence team confirmed the hacking incident in their statement on their official X (formerly Twitter) account and stated that no interaction with the protocol should be made at this time.
*This is not investment advice.