Verge of disaster: 200 days transactions wiped from blockchain

Cryptocurrency

Privacy-focused blockchain network Verge (XVG) has experienced a significant block reorganization, replacing transactions dating as far back as July 2020.

Despite being described as potentially “the deepest reorg that has ever taken place in a top 100 cryptocurrency,” analysts are yet to confirm that the incident comprised a coordinated attack.

Coinmetrics COO Antoine Le Calvez was one of the first to notice the reorg, sharing a screenshot on Twitter showing that at least 560,000 blocks had disappeared on February 15.

Le Calvez suggested the reorg could have been caused by a double-spend, in which a number of XVG tokens are used simultaneously for two separate transactions. However, due to the magnitude of the incident, Calvez admitted it will take some time for developers to comb through the data to establish the exactsource of the reorg.

As a result of this roll-back, any user who received or purchased XVG tokens since July 2020 may have lost their entire balance, with Deribit Insights’ researcher “Hasu” tweeting that “thousands of balances have simply evaporated.” One Verge investor tweeted that their wallet balance is now empty after the attack.

Despite the scale of the potential attack, Hasu believes it will be “pretty easy to counter,” advancing that “nodes will reject the attacker’s chain and restore the previous one.” Hasu stated the incident highlights the vulnerability of blockchains supported by GPU mining.

This isn’t the first time a reorg has been suggested to fend off would-be attackers, with Hasu referencing back to 2019 when Vertcoin succumbed to a 51% attack. The same year, after major exchange Binance was hacked for more than $40 million, founder and CEO Changpeng Zhao floated the idea of conducting a Bitcoin reorg to recover the funds, however, the idea was quickly decided against.

An unconfirmed screenshot shared by Twitter user @etn_electroneum showed XVG advisor AlexanDre stating the source is linked to some nodes who wanted to create a fork. He also added that there was not a 51% attack.

XVG advisor AlexanDre telegram announcement on Verge reorg. Source: Twitter

In the last six hours, XVG has dropped by almost 15% to $0.0224. This has resulted in it moving out of the top 100, according to Coingecko. Verge’s explorer is still down.

Privacy-focused blockchain network Verge (XVG) has experienced a significant block reorganization, replacing transactions dating as far back as July 2020.

Products You May Like

Articles You May Like

Cathie Wood’s ARK Invest adds more Bitcoin exposure as GBTC, Coinbase stock hit new lows
Data shows traders are slightly bullish even as crypto’s total market cap falls under $800B
On the move: FTX hacker splits nearly $200M in ETH across 12 wallets
Turkey Investigates Former FTX CEO Sam Bankman-Fried for Fraud, Seizes Assets
FTX stake in US bank raises concerns about banking loopholes

Leave a Reply

Your email address will not be published. Required fields are marked *