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Hackers Attack Verge Blockchain [again] – Steals $1.7M

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  • Second attack on Verge stealing 35 million XVG
  • Again attacked on the same glitch which persisted after the first hack

Verge Hack [once again]

Privacy cryptocurrency, Verge is under pressure after it was exposed to 51 percent attack for the second time since beginning of April.

This hack lasted for few hours, they stole around 35 million XVGs – which is worth above $1.7 million at the current exchange rate.

Verge suffered a similar attack last month resulting in the hack of 250,000 XVG, this credited hackers account with $1.1 million at that time. Both the attack is claimed to be the done through 51 percent attack with the same vulnerability in the scrypt exposed again.

Expose Verge Hacking

According to the data published by ocminer in BitcoinTalk forum. An altcoin mining pool operator Supernova – was successful to make a fork in Verge blockchain by 51 percent attack. To make this happen, attacker inserted a bug in the Verge code that allowed malicious miners to falsify timestamps and then rapidly mine one after the other in quick succession.

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Verge blockchain functions in five mining algorithm. And according to the image supplied by ocminer, it suggests that attacker got access to 2 of them- Scrypt and lyra2re – mined them virtually with ease, and bluffed the network of accepting them as the main blockchain by false timestamping the blocks.

The attack seems to have been carried out between the blocks 2155850 and 2206272, enabling the attacker to hack approximately 35 million XVG – that is worth above $1.75 million. Since the attack was carried out by taking over 2 vulnerable algorithms, it seems to be again exposed for any future attack without creating any permanent solution to it.

Verge has so far de-emphasized the hack as a denial-of-service (DDoS) attack directed at some XVG mining pool.

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Verge developers are facing criticism in the community for downplaying the severity of the first attack. Apart from this attacks, Verge’s Tweeter account was also hacked earlier this March.

Verge activated an emergency hard fork intended to tackle the issue, but many critics including ocminer argued that this upgrade was merely a “band-aid” and did not eliminate the vulnerability permanently.

Verge Business Win

In April 17, Verge had announced its partnership with adult entertainment industry giant Mindgeek. It holds the largest cryptocurrency adoption cases by an industry till date. After this expansion, Pornhub, one of the largest adult entertainment industry lead along with Mindgeek’s other platform including Brazzers began accepting Verge payment. Verge’s focus on privacy and anonymity to its users is said to be the reason for this partnership.

Will Verge be able to gain confidence back or do you think this a right time for investment? Comment below what you think on this.

If you want to know what is 51 percent attack, click here

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