THORChain Got Compromised In Latest DeFi Hack With $7.6M Stolen

ThorChain got compromised in a new DeFi hack where $7.6 million were stolen, suffering a second security breach in less than a month this time as we can see more in our latest crypto news.

ThorChain got compromised and it is the latest protocol to be exploited with estimations showing that the hackers might have swooped up to $7.6 million in digital assets. The team behind the DeFi exchange promised to make all affected users and requested the perpetrators to contact them and discuss the return of the funds. THORChain reported the hack on Twitter and the amount stolen still remains unconfirmed as the initial estimations show that it was more than 13,000 ETH worth roughly $25 million at today’s prices.

Initial Assessment.

1) ETH Bifrost was recently updated to allow the router to be "wrapped" by contracts (to allow composability)https://t.co/GXclWbPgP2
2) The attacker then tricked the Bifrost by using a custom wrapper contract, when they actually transferred 0 ETH https://t.co/TlcNkO9PMj

— THORChain #ACTIVATETHESYNTHS⚡️ (@THORChain) July 16, 2021

However, the team later updated with new numbers of 4000 ETH and at that time other estimations suggested that the amount is even less or about $6 million. In the official Telegram account, THORChain explained that node operators, swappers, and liquidity providers will have access to funds when the issue has been patched and the network resumes. The team promised that the treasury has the needed funds to make all victims whole again and asked for the hackers to get in touch:

“While the treasury has the funds to cover the stolen amount, we request the attacker get in contact with the team to discuss the return of funds and a bounty commensurate with the discovery.”

Later on, THORChain outlined the recovery plan that is already in motion. Before the attack, the hackers paid “huge slip fees” of about $1.4 million captured by nodes and another $1.4 million caught by the ERC-20 liquidity providers as the team explained. THORChain said that only users affected are ETH LPs and they will be made whole. It’s worth noting that the protocol experienced another hack but only $140,000 was stolen with the team classifying the network as very mature and resilient. Shortly after the attack, the price of the ThorChain native token RUNE dropped by 20%.

As reported a few days ago, THORChain is a cross-chain liquidity protocol that allows investors to trade crypto assets across chains and RUNE is the native token of the protocol. RUNE surged 35% in the past 24hours in spite of the fact that both ETH and BTC are consolidating. The cryptocurrency is changing hands for $1.81 on Binance but traded even higher on other venues. The cryptocurrency is up by 15% over the past week and over 75% in the past month according to the data.