Key Takeaways:
- An attacker exploited Convergence protocol to mint 58 million CVG tokens and swapped them for ~$200,000 in wETH and crvFRAX.
- CVG’s price plummeted by 99%, wiping out its $17 million fully diluted value.
- Total losses are around $210,000, with funds moved to Tornado Cash.
The decentralized finance protocol Convergence, based on Curve, was hacked on August 2, 2024.
The attacker exploited a vulnerability in the protocol to mint 58 million CVG tokens.
🚨 URGENT COMMUNICATION 🚨
— Convergence (@Convergence_fi) August 1, 2024
Convergence has been hacked. Please don't interact with the protocol.
These tokens were then swapped for approximately $200,000 worth of wrapped ether (wETH) and crvFRAX stablecoins using Curve’s liquidity pools.
The funds were subsequently transferred to Tornado Cash.
The attack caused CVG’s price to plummet by 99%, dropping from around $0.12 to $0.0004, wiping out the token’s $17 million fully diluted value.
🚨 IMPORTANT 🚨
— Convergence (@Convergence_fi) August 2, 2024
The article below explains the cause of the exploit that happened a few hours ago on Convergence.
We will soon communicate about the options we have to move forward.https://t.co/qkaiF8V4kG
Web3 security firm QuillAudits confirmed the attack and reported the total losses to be around $210,000.
Following the breach, Convergence advised users not to interact with the protocol to avoid further risks.
The incident highlights significant vulnerabilities in the protocol, causing substantial financial damage and eroding user trust.
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