According to CoinDesk, decentralized finance protocol Convergence, which is based on Curve, experienced a significant exploit on Thursday. The attack led to the near-total devaluation of its token, CVG.

The attacker exploited a vulnerability in Convergence's codebase to mint 58 million CVG tokens. These tokens were then exchanged for 60 wrapped ether (wETH) and 15,900 crvFRAX stablecoins using liquidity pools on Curve, as reported by web3 security auditing firm QuillAudits. Blockchain data from Etherscan indicates that the attacker converted the stolen funds to ether (ETH) and transferred them to Tornado Cash, a privacy-focused mixing service.

The exploit resulted in a loss of approximately $210,000, according to QuillAudits. However, the impact on CVG token holders was even more severe. The token's fully diluted value (FDV) of $17 million before the attack was wiped out, with CVG's price plummeting by 99% in the Curve liquidity pools. The token's value dropped from around $0.12 to $0.0004.

In response to the attack, Convergence issued an urgent communication advising users to avoid interacting with the protocol. The incident highlights the ongoing vulnerabilities in decentralized finance platforms and the significant risks they pose to investors.