A major security hole in the decentralized finance protocol Convergence has caused its CVG token to fail. The hacker took advantage of a weakness in the protocol’s script to make 58 million CVG tokens and trade them for wrapped Ether and crvFRAX stablecoin worth $200,000.
The attacker then changed the money into Ethereum and sent it to Tornado Cash, a tool for privacy that hides transaction histories. The breach caused huge losses of about $210,000 in money and a huge drop in the value of the token.
Before the attack, CVG was worth $17 million after all of its value had been lowered, but its price dropped by 99% in Curve liquidity pools.
Users have been told by Convergence to stop using the app to avoid more risk. The protocol’s team and security experts are looking into the breach to stop it from happening again and to limit the damage it did.
