Verge (XVG) hacked again – 35 million XVG tokens reportedly generated by hacker

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Verge (XVG) hacked again – 35 million XVG tokens reportedly generated by hacker


Crypto-crime such as hacking, is increasing day by day, and unfortunately, Verge seems to suffer a lot within a short duration of time.
In the month of April, Verge (XVG) was hacked, and within a month, which is in May, it suffered another attack. And according to the reports on the online crypto forums, apparently, the hackers had used the same tactics as the one done in April, but with few additional alterations.
Due to these continuous hacks, Verge clearly doesn’t seem to be trustworthy anymore, to many people.

How did the hack take place?

It was indeed a well-planned hack. According to “Ocminer,” who is a Bitcointalk user, the attacker used a modified version of April’s attack vector in order to hack the blockchain.
Instead of one algorithm, the hacker had apparently used two algorithms to fork the main Verge chain. This, as a result, gave away all the block records to the hackers and hence they were capable of earning millions and millions of Verge XVG tokens through this process.
Also, it must be noted that Ocminer had mentioned the way in which Verge got exploit when the first hack had taken place.

It was shown that in the algorithms used, at the scrypt algorithm as well as at the lyra2re algorithm, the numbers were matching, i.e. both were set to the infinitesimal level of difficulty.
Each of the above-mentioned algorithms was used interchangeably in order to manipulate the transaction blocks’ time stamps. This further enabled the hacker to easily ‘manufacture’ 25 blocks per minute. This basically amounts to about 18,250 XVG per minute, i.e. $950 per minute.
At the current XVG price, the hacker has carted away about $1.8 million.

u/Flenst, who is a Reddit user, thinks that the attack seems to be an end which basically suggests that it is over. The third edit on Flenst’s post reads:

It seems the attack is over, 35.000.000 XVG were generated in a few hours. But this also means there is still no fix, and this is possible at any time again. Meanwhile, the only official info out there is ‘mining pools are DDoS’d’.

What does Verge say?

It is a common doubt in many people’s mind, whether to feel secure about Verge or not. This doubt was born due to the negligence by Verge even after a prior attack which initiated 51% attack.

Also, when Ocminer alerted Verge, they initially rejected the claim but later considered it as a “small hash attack.”  But clearly not stern actions were taken due to which a similar attack was done within a month.

This time, they mentioned the following on their Twitter account –

“It appears some mining pools are under ddos attack, and we are experiencing a delay in our blocks, we are working to resolve this.”

Hence, whether to have faith in Verge or not is now left on how Verge handles this major issue.

 

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