The attack was not one on Verge itself but rather a specific node which had been set up to process Verge coins.
In a space of fewer than 24 hours, yet another cryptocurrency hacking story has surfaced. This time, multi-currency crypto wallet CoinPouch was the target. This week the company announced that one of its nodes containing Verge currency had been hacked.
The company first made the announcement on its official Twitter handle, and the followed up with an official statement. In response to the announcement, Verge Currency tweeted its concern before it posted the wallet address in which the lost coins ended up.
We discovered a hack of a @vergecurrency node that is connected to Coinpouch which resulted in the loss of user's funds. We are preparing a statement of the hack and the actions we are taking regarding the hack.
— CoinPouch (@coinpouchapp) November 22, 2017
To clarify the matter, the hack was not a breach of the Verge coin itself or even the entire CoinPouch wallet. The attack targeted a specific node which had been set up to process Verge coins. It has been reported that the wallet currently holds 126 million coins, worth over $675,000.
In its official statement, CoinPouch elaborated on the incident along with a timeline. According to the statement, a CoinPouch wallet user first reported the incident on the 9th of November. In the complaint, the user mentioned the loss of Verge coin from his wallet.
our condolences to all users that had their funds stored on coinpouch. hopefully we can find out what happened. seems the coins have ended up at this address: DM5Esw71BnTdJzX1FWpNLvdnrLuCS91v4N https://t.co/JIeS2LARiN
— vergecurrency (@vergecurrency) November 22, 2017
At the time CoinPouch along with the lead developer on Verge could not find anything wrong. It was later concluded that there might have been a network issue. But, the situation worsened for the two teams, when multiple complaints started to pour in after a few days.
Upon further investigation, the team was able to find out that one of the nodes handling Verge coins was compromised. It was also found that the hacker had routed the coins from this node to his own wallet. Launched as DogeCoinDark in October 2014, Verge was developed on the Bitcoin blockchain.
What made it different was added privacy enhancement features. These included the use of anonymity-centric networks Tor and i2P. This coin also supports multi-algorithm mining support. For enthusiasts, this meant that the coin could be mined with a range of different equipment.
This also added to the security of the decentralized system. Since the 2014 launch of the coin, until its rebranding in February 2016, the price of the coin went sideways. But shortly after the rebranding, the price of the coin took an upward leap.
Investors recorded an all-time high of $0.008977 in early November this year. The coin has a market cap of over $76 million.