CVG Token Drops 99% After Convergence DeFi Protocol Hacked

On the morning of August 1, 2024, an unknown hacker attacked the decentralized Convergence protocol. Having gained access to the project’s smart contract, he minted about 58 million CVG tokens and sold them, PeckShield experts report.

An attacker took advantage of a smart contract vulnerability to issue new coins. He exchanged them for 60 WETH and approximately 15,900 crvFRAX with an estimated value of $210,000, according to Etherscan.

Convergence representatives confirmed the protocol exploit. They clarified that in addition to the 58 million CVG allocated for staking, the hacker took possession of “unclaimed rewards” in the amount of $2,000 intended for Curve liquidity providers.

Amid the security incident, the protocol's native CVG token has fallen over 99% and its market capitalization has dropped to $57,000. At the time of publication, the coin is trading at $0.0004, according to CoinMarketCap