Ravencoin Attacked, $5.7 Million Created

Ravencoin Attacked, $5.7 Million Created 1024 500 Crypto Rand Group
Ravencoin

We were used to hacks of exchange platforms or decentralized applications. However, recently, the Ravencoin cryptocurrency system was attacked, allowing a hacker to create 5.7 million dollars in RVN… out of nowhere!

5% of the outstanding supply

The flaw was revealed through a press release by the Ravencoin team on Friday, July 3. This one goes back over the few information available to date concerning the hack.

One attacker managed to create 315 million RVN from nowhere, worth approximately $5.7 million at the time of writing. This amount represents approximately 5% of the total supply of RVN tokens in circulation. Ultimately, this amount will represent 1.5% of the total 21 billion RVN that will be mined.

Specifically, the flaw would have been discovered by the CryptoScope team. The team hastened to contact Ravencoin to inform it of the vulnerability present on the blockchain.

The two teams then worked together to keep the information secret until they were able to fix the flaw. It has since been fixed, and miners and node holders have been invited to update their software.

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Still a fuzzy process

Little information has been reported about the causes of this attack. Nevertheless, the press release states “a proposal for a Community code” which would have caused a bug to be exploited.

Due to the nature of the flaw, no user base was affected by the attack, as explained in the press release :

“The vulnerability does not allow you to steal RVNs or assets that you own and control, but to create new RVNs that should not exist. »

Although user funds were not directly impacted, the total supply of tokens increased, thereby causing inflation. This could eventually have a downward impact on the price.

Unfortunately, no action is envisaged to recover the funds. Indeed, the funds have already been transferred to an exchange platform and traded:

“They are mixed with other RVNs and therefore any programmatic attempt to burn them, with the support of the miners and the community, would cause irreparable harm to innocent victims.” 

RVN holders will have to be prepared for a likely drop in price until a more consistent price is reached. The price will depend on the total new supply in circulation. 

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