Verge fell victim to a major blockchain reorganization. 6 months of transactions and credits have been deleted. Developers say it can be straightened out again.
The privacy-focused blockchain network Verge (XVG) has fallen victim to a significant block reorganization that replaced transactions. This reorganization goes back to July 2020
Although this is potentially „profound reorganization that there ever at a top 100 cryptocurrency were“ concerns , analysts have not yet confirmed that it is the incident was a coordinated attack.
Coinmetrics operations manager Antoine Le Calvez was one of the first to notice the reorganization and shared a screenshot on Twitter. This showed that on February 15, at least 560,000 blocks had disappeared.
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.
Le Calvez suggested that the reorg could have been caused by a double issue. A number of XVG tokens are used simultaneously for two separate transactions. However, due to the scale of the incident , Calvez admitted that it will be some time before developers can comb through the data to pinpoint 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 of their credit. Deribit Insights researcher „Hasu“ tweeted that „Thousands of stocks have simply evaporated“. A 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“. One could „reject the nodes of the attacker’s chain and restore the previous one“.
Hasu said the incident underscored the vulnerability of blockchains based on GPU mining
This is not the first time that a reorganization to ward off potential attackers has been proposed. Hasu points to 2019 when Vertcoin was the victim of a 51 percent attack . In the same year, the major exchange, Binance, was hacked and over $ 40 million was stolen. The founder and CEO Changpeng Zhao then suggested doing a bitcoin reorganization to get the money back. But this idea was rejected.
On an unconfirmed screenshot shared by Twitter user Crypto_Michael , XVG consultant AlexanDre stated that the source is linked to some kotes trying to fork. He also added that there was no 51 percent attack.
XVG consultant AlexanDre: Telegram announcement on Verge reorganization. Source: Twitter
In the past six hours, XVG is down nearly 15 percent to $ 0.0224. According to Coingecko, this has led to the coin falling out of the top 100. The Explorer of Verge is still offline.