DeFi Protocol Convergence Hacked, CVG Token Value Plummets 99%

On Thursday, the decentralized finance (DeFi) protocol Convergence was hit by a major hacking attack, resulting in a significant collapse of its CVG token value.

Hackers Exploit Vulnerability in Convergence Code Library

According to web3 security company QuillAudits, the attackers exploited vulnerabilities in the protocol’s code base to mint 58 million CVG tokens. These tokens were then exchanged for wETH and crvFRAX through Curve’s liquidity pool. The funds were subsequently converted into ether (ETH) and transferred to Tornado Cash for anonymity.

This malicious activity led to an estimated $210,000 in financial losses and a catastrophic drop in the value of the CVG token, plunging 99% from $0.12 to $0.0004.

Convergence Urges Users to Halt Activity

As a response to the breach, Convergence has advised users to refrain from interacting with the protocol to prevent further risks.

The protocol’s team and security experts are currently investigating the vulnerability to bolster security measures and mitigate the impact of the attack.

Importance of Strong Security Measures in DeFi

This incident underscores the ongoing risks associated with DeFi protocols and highlights the crucial need for robust security measures to safeguard digital assets.