An unknown attacker has exploited a bug in the Verge cryptocurrency network code to mine Verge coins at a very rapid pace and generate funds almost out of thin air.

The Verge development team is preparing a hard-fork of the entire cryptocurrency code to fix the issue and revert the blockchain to a previous state before the attack to neutralize the hacker’s gains.

Verge devs: Not a >51% attack

The incident took place yesterday, and initially, users thought it was a “>51% attack,” an attack where a malicious actor takes control over the more than half of the network nodes, giving himself the power to forge transactions.

Rumors swirled around all day yesterday, as users feared the attacker might use his dominant network position to siphon funds from their accounts.

The Verge team eventually came out and clarified the details surrounding the incident, denouncing rumors of a 51% attack, but not revealing additional info about the real cause of the incident.

Nonetheless, users who looked into the suspicious network activity eventually tracked down what happened, revealing that a mysterious attacker had mined Verge coins at a near impossible speed of 1,560 Verge coins (XVG) per second, the equivalent of $78/s.

Under normal circumstances, a single miner wouldn’t have ever been able to receive such a high reward for processing Verge blockchain computations.

Hash attack lasted only three hours

The malicious mining lasted only three hours, according to the Verge team,…

[SOURCE]