Subscribe & Save 5% on Cryptonary Pro!
X
Blockchain

Verge suffers reorg attack, 200 days of transactions wiped away

  • Verge suffers a reorganization attack.
  • The blockchain said that the attacker failed to achieve what they wanted to do.
  • The blockchain suffered a 51% network attack in 2018 in which $1.7 million in XVG tokens was stolen.

A blockchain protocol has become a victim of a reorganization attack, with six months of transactions vanishing on the network.

Verge, a privacy-focused blockchain, fell victim to a reorganization attack, which, according to the network, failed.

560K+ blocks of data wiped away

Antoine Le Calvez, the chief operating officer at Coinmetrics was one of the first people to notice the attack and tweeted that more than 560,000 blocks had disappeared.

Calvez added that it will take a considerable amount of time to sort out the mess created by the attack.

There is a high chance that users who bought or received Verge privacy-focused cryptocurrency XVG tokens have lost them. 

Hasu, a crypto researcher at Deribits Insights tweeted that “Verge is experiencing the deepest ever reorg in any PoW blockchain.”

“An attacker has replaced 200 days worth of txns (transactions) with empty blocks, so thousands of balances have simply evaporated,” Hasu continued.

Despite the scale of the attack, the researcher noted that what is scary is the fact the attack is easy to counter, an indication that GPU mineable coins are insecure.

Funds are safe

Despite the claims that users may have lost their tokens in the reorg attack, Verge assured users that their funds are safe.

A few hours after the attack, several exchanges suspended incoming and outgoing Verge transactions.

According to a blog post published by Verge, the attacker tried and failed. The network’s dev team is working with a miner to prevent future instances of the hack.

Throughout the entire day, the dev team and a miner worked hand in hand to release a hot patch and work on future update to prevent this from happening again.”

This is not the first time that Verge’s blockchain has been exploited. In May 2018, the blockchain suffered a 51% attack in which the hacker drained nearly 35 million XVG tokens worth around $1.7 million at the time. 

In trying to mitigate the damage, the blockchain was accidentally forked.

XVG price action

The XVG token was trading at $0.024772 in the last 24 hours. The price climbed to $0.027057 before falling to $0.021388.

The token is recovering slightly though it is more than 8% down in the last 24 hours.

Sign up for our FREE mailing list

Join 12,590 others now and get actionable research and analysis sent directly to your inbox.

Post a Comment

GET YOUR FREE WEEKLY CRYPTO BRIEF

Delivered to your inbox, every Sunday evening.