Convergence Finance team has made an unexpected move by contacting the hacker who exploited the protocol, resulting in a $212,000 loss.
On August 1st, a flaw in the CvxRewardDistributor was used to mint 58 million CVG tokens, which were then sold, leading to a drastic drop in the token’s value by over 99%.
On August 6th, Convergence Finance sent a message to the attacker through a transaction on the Ethereum network.
The message read: “Hey, Convergence Finance would like to discuss with you about the bug you found and successfully exploited on August 1st. Congratulations on identifying it. We believe you acted as a white hat, and we would like to discuss with you about the funds (65.8 ETH) that you took and sent through TornadoCash.”
The message included a contact email and an Ethereum address for the return of the funds, with a warning that if there was no response within 48 hours, further action would be taken.
The attack on August 2nd not only led to the sale of the minted CVG tokens for $210,000 but also saw the theft of $2,000 in unclaimed rewards from Convex, which belonged to Convergence users. The stolen funds were deposited into Tornado Cash, a crypto-mixing service, to obscure the transaction history.
This exploit is just one of many attacks in the Web3 space recently. According to a report from PeckShield on August 1st, over $266 million in cryptocurrency was lost to similar exploits in July alone. The largest of these attacks targeted the Indian crypto exchange WazirX, resulting in losses of over $230 million.
Also Read: White Hat Hacker Suspected in $9.8 Million Ronin ETH Exploit
