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Verge Suffers Another Crypto Attack, Loses $1.75 mln

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Tue, 05/22/2018 - 19:31
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  • Despite initiating a hard fork after the last security breach, Verge suffers second hack in less than two months.

Cover image via U.Today

Privacy coin Verge (XVG) suffers the second 51-percent attack in less than two months, resulting in $1.75 mln in lost crypto, Tuesday.

It appears that the attacker used a bug in the Verge code to set false timestamps on blocks and then rapidly mine new ones in quick succession to execute the hard fork, according to data published on BitcoinTalk by forum user “ocminer,” an operator of altcoin mining pool Suprnova.  

The hacker gained control of two of the five mining algorithms that Verge uses, ambushing the network into accepting them into the primary chain, sources say.

This attack appears similar to the one experienced by the Verge network less than two months ago, when a miner successfully moved $1.1 mln. 

After the first attack, Verge activated an emergency hard fork intended to address the bug, but critics say it did not eliminate the underlying vulnerability.

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The Verge development team acknowledged a mining-related issue Monday afternoon attributing it to a DDoS attack directed at several XVG mining pools and has not tweeted since.

Verge’s price has declined seven percent within the past 24 hours.  

About the author

Urvashi Verma is a Chicago-based reporter who writes about the convergence of technology and business. She is interested in fintech, digital currencies, blockchain and currency markets. Urvashi formerly worked with the Times of Israel covering Israel's booming tech industry including Start-Up Nation, venture capital investment, and crowd-funding platforms.

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