The Verge Exploit Hack – What Happened?
Verge is a privacy token that has been cherished by the zeolotry found in its member’s community. And recently the beloved website suffered a 51% attack. The attack was performed by a malicious miner ho took a massive control over the platform’s hashrate, a superb feat that shows anything is possible. With the control the miner was able to modify already completed transactions and putting the entire Verge blockchain’s integrity into jeopardy. There were as many as 250,0000 of the coins were taken by the malevolent hacker. The theft forced the entire platform to prepare the system for a hardfork.
The saddest part of the story is that the altcoin is prone to accidents, so this is already a bad day for the platform. The story of this goes that yesterday, April 4th – Ocimer, a regular posted on the Bticointalk Forum, made a statement about Verge’s Token the XVG and the hard hitting 51% attack put on it.
How Could The Hacker Achieve 51% Hashrate?
Apparently, there is a bug in the system’s code that was taken advantage of by the hacker. The hacker was able to fake timestamps and cause the same algorithm to be used on every new block. Typically, the blocks each use a different algorithm on each block the stop any one miner or mining pool from controlling the XVG Token’s hashrate.
Another bad part of the story is community is known to be very unaccepting of negative stories. And soon enough, and it take long for them to flood the Bitcoin Talk Forum in order to dismiss the so called “fake news.”
One fanboy even stated that:
“The timing of this attack seems highly suspicious. It is possible this was not an individual but an anti-crypto governmental organization that fears the huge deal that Verge is making? Way too much coincidence here. I’ve said or months that all it takes is one huge (legit) deal with an Amazon/Paypal class company and the market will quadruple overnight.”
The hack was done by using existing code in the XVG Token. And the hacker was able to use the messed-up code to mine no multiple blocks at once. And the other part of the problem is that it was all done through the use of script algorithm. And that a feat that almost everyone in the world thought was impossible.
How Long Was The 51% Attack Hack Open?
The hacker kept the onslaught going for a massive three hours, and by the time it was over the thief was able to confirm hundreds of blocks. And this in turn made the rollback of the blockchains a must so the damage could be reversed.
Is The Verge 51% Attack Hashrate Exploit Fixed?
The lead developer at Verge Justin placed an emergency commit to fix the issue temporarily, and that was successful for the time being. But the fix didn’t happen until the second time they tried. And now, because of the irreversible damage, a hard fork must be started to fix the problem altogether.
This may just be the beginning of the problems for the company as the hacker has continually taunted the company on the forum post, saying,” Hey Verge Team, get some real developers to fix your code. We have found another 2 exploits which can make quick hashes well.” To further escalate the pain and suffering of the Verge team, at least one holder was also scammed on Twitter, where there was a false explanation stating:
“I visited some hours ago on the official Verge Twitter profile to read the news about the hash hack. While reading the tweet I noticed several messages offering compensation for the attack by Verge. Send x ETH and you get some bonus back. Sounded legit to me as it was affiliated to the hash attack and I suffered from it as well having some hors only orphaned blocks on the official page.”
Is A 51% Attack Common?
Apparently 51% attacks are almost non-existent. The reason is, to take control of a majority of Bitcoin’s Hashrate – and attacker would have to get over 14 exhashes of power, something that is basically impossible. But with altcoins, the hashrates are much lower. But even then, attacks in the wild are unbelievably rare.
On a side note, but relevant Electroneum, another PoW or Proof of Work token was supposedly to have suffered from a 51% attack only three-four days ago. The reports are coming back now that the attack has commenced again and the same hackers from the Verge attack are likely the same ones getting Electroneum.
Where Does Verge XVG Stand Now?
Now, the XVG token is down 16% in just the last 24 hours, and the attack on Wednesday has only prepared the industry for the next big announcement coming on April 16th. The attack on Verge is only one of the many challenges the platform has suffered this year, previously having to literally beg their community while metaphorically on their knees for $3 Million USD. And now they’ve been hit by the attack.
And while most of the cryptocurrency world is laughing at Verge and their problems, the community at Verge who truly have faith in the company, are still investing and using the company like nothing ever happened.