Hack attack on Verge: transactions from the last 200 days deleted from the blockchain
Verge has fallen victim to a major blockchain reorganisation. Six months of transactions and balances were deleted. Developers say that can be fixed.
Privacy-focused blockchain network Verge (XVG) has fallen victim to a significant block reorganisation in which transactions were replaced. This reorganisation dates back to July 2020.
Although it is potentially the „deepest reorganisation ever seen on a top 100 cryptocurrency“, analysts have not yet confirmed that the incident is a coordinated attack.
Coinmetrics operations manager Antoine Le Calvez was one of the first to notice the reorganisation and shared a screenshot on Twitter. This showed that at least 560,000 blocks had disappeared on 15 February.
Looks like $XVG (Verge) experienced a massive 560k+ blocks reorg.@coinmetrics‘ node is on a new chain whose last common ancestor with the previous chain dates to July 2020.
– Antoine Le Calvez (@khannib) February 15, 2021
Le Calvez suggested that the reorg could have been caused by a double issue. This involves a number of XVG tokens being used Crypto Engine simultaneously for two separate transactions. However, due to the scale of the incident, Calvez acknowledged that it would take some time for developers to comb through the data to track down the exact source of the reorg.
As a result of this rollback, all users who have received or purchased XVG tokens since July 2020 may have lost all their funds. Deribit Insights researcher „Hasu“ tweeted that „thousands of holdings just evaporated“. One Verge investor tweeted that his wallet balance was now empty after the attack.
Despite the scale of the potential attack, Hasu believes it will be „fairly easy to counter“. He said one could „reject the attacker’s chain nodes and restore the previous one“.
Hasu said the incident highlights the vulnerability of blockchains based on GPU mining
This is not the first time a reorganisation has been proposed to defend against potential attackers. Hasu points to 2019, when Vertcoin was the victim of a 51 per cent attack. In the same year, major exchange Binance was hacked and over US$40 million was stolen. Founder and CEO Changpeng Zhao then suggested a Bitcoin reorganisation to recover the money. But that idea was scrapped.
In an unconfirmed screenshot shared by Twitter user Crypto_Michael, XVG advisor AlexanDre stated that the source was connected to some kots who wanted to bring about a fork. He also added that there was no 51 per cent attack.
In the last six hours, XVG has fallen nearly 15 percent to US$0.0224. This has caused the coin to fall out of the top 100, according to Coingecko. Verge’s explorer is still offline.