Verge Blockchain Exploited Again, Hackers Steal $1.7 Million in Tokens

Last month, privacy-focused cryptocurrency Verge was the victim of a ’51 percent attack’ an unfortunate scenario (for Verge and its investors) that resulted in roughly 250,000 XVG being stolen. Verge responded with a hard fork, but unfortunately, it appears the vulnerability still persists today despite countermeasures being taken.

According to OCMiner, the bitcointalk.org user who initially discovered the empty blocks – thus alerting the cryptocurrency community to the initial Verge hack back in April the same glitch that was exploited previously was targeted again by hackers, resulting in yet another attack. This time, though, a staggering 35 million XVG tokens were stolen – worth over $1.7 million according to data from CoinMarketCap.

Like the previous 51 percent attack, hackers were able to mine multiple blocks one minute apart from one another, and gain control over the majority network hashrate, compromising the blockchain and resulting in XVG tokens being stolen by the hacker.

In a Reddit post raising awareness of the exploit, user Flenst explains that the new hack simply adds a second algorithm in addition to the one used in the previous attack, to achieve the same dominance over Verge’s blockchain. The Reddit post also claims that the hackers were mining 25 blocks per minute, “resulting in 8250XVG or 950$ per minute” being stolen by the hacker.

Verge took to Twitter to downplay the hack, saying their mining pools were “under dos attack,” causing a delay in block mining – but the community isn’t buying it, even replying to Verge’s tweet with a link to the aforementioned Reddit post outlining the entire attack. Ironically, even Verge’s official Twitter account was hacked back in March in an unrelated attack.

Despite all the bad news lately for Verge, the company revealed a huge partnership with Pornhub last month, with Verge being the official cryptocurrency accepted by the adult content provider for premium subscriptions.

Tony Spilotro

Tony Spilotro is a skilled content producer with over a decade of experience across editorial, SEO, and social media. Tony grew up around technology, loves video games, saw the rise of the Internet, and is a master of the search engine - cryptocurrency was a natural evolution of Tony's biggest passions

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