Another cryptocurrency hacking story has surfaced over the last 24 hours – multi-currency crypto wallet CoinPouch has announced that one of its nodes containing Verge currency has been hacked. The company made the announcement on its official Twitter handle, and afterwards issued an official statement.
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
In response to the announcement, Verge Currency tweeted its concern and posted the wallet address at which the lost coins ended up.
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
To be clear, the hack was not a hack of the Verge coin itself or the entire CoinPouch wallet – the hack targeted a specific node set up to process Verge coins. Reportedly, the wallet currently holds 126 million coins, worth over $675,000.
In the official statement, CoinPouch elaborated on the incident along with a timeline. A CoinPouch wallet user first reported the incident on the 9th of November, mentioning the loss of Verge coin from his wallet. CoinPouch along with Verge’s lead developer could not find anything and concluded that it was a network issue.
But the situation got murkier when multiple complaints started to flood after a few days. After further investigation, the team found that one of the nodes handling Verge coins was compromised. The hacker routed the coins from this node to his own wallet.
Launched as DogeCoinDark in October 2014, Verge was developed on the Bitcoin blockchain with added privacy enhancement features, such as the use of anonymity-centric networks Tor and i2P. This coin also supports multi-algorithm mining support. So this coin can be mined with a range of different equipment, adding to the security of the decentralized system.
Since its launch and until its rebranding in February 2016, the price of the coin went sideways. But after the rebranding, the price took an upward leap and recorded an all-time high of $0.008977 in early November this year. The coin has a market cap of over $76 million.