Decentralized Exchange THORChain Loses $8 Million from a Hack Attack

The THORChain cross-platform decentralized exchange suffered multi-million dollar losses again, falling victim to hackers for the second time in a week and for the third time in a year.

July 23, 2021, | AtoZ Markets – In a July 23 announcement, THORChain, a cross-platform decentralized exchange (DEX), posted a warning to users on its Twitter account today, stating:

“THORChain project faced high-tech attack on ETH router”

Recall that exactly a week ago, as a result of a hack attack, THORChain lost about $5 million. Earlier, at the end of June, its Chaosnet platform, as a result of hackers, had already suffered losses in the amount of about $140,000.

According to the project team, this time the amount of losses was about $8 million.

The THORChain project is a liquidity protocol that supports cross-platform asset exchanges between different blockchain networks without intermediaries.

Who’s behind THORChain Hack Attack?

Curiously, the platform has now come under the crosshairs of some generous hacker, who deliberately limited the scale of the damage and demanded a reward of 10% of the stolen amount. This allowed THORChain to assume she was dealing with a “white hacker.”

The project has already confirmed their readiness to negotiate with him and promised the requested reward in case he gets in touch with the platform team.

Also, THORChain decided to suspend the operation of the Multi-Chain ChaosNet platform systems due to the presence of vulnerabilities until a full code audit is carried out.

“Now the community and the project are going through difficult and truly painful times. The project has sufficient funds to cover the stolen amount, but it is time to slow down. “

It is noteworthy that the hacker himself gave similar advice on the THORChain Discord channel. He advised the project not to force the 9-digit codes with such haste and stop the system until it passes the test.

As the white hacker explained, he wanted to teach the platform a lesson and deliberately limited the scope of the destruction. Meanwhile, he said, if desired, Ethereum, Bitcoin, Binance Coin, Lycancoin, and other tokens of the BEP-20 format could become its production. He also mentioned a number of other “numerous and critical” issues.

In this regard, ShapeShift CEO and Thorchain fan, Eric Voorhees, has already noted:

“Don’t be fooled – Thorchain has had a terrible month. The project needs to slow down. Now is the time to apply the turtle strategy. However, I still remain a dedicated supporter of the project and I am glad that these ChaosNet issues have been identified. “

RUNE course dropped again

In response to the latest THORChain hack attack, RUNE, the native THORChain token, sank 27% from an intraday high of $4.80 to $ 3.50, according to CoinGecko. Over the past two weeks, the coin has lost 38% of its value.

At the time of writing, trades were held in the $4 region. Thus, the price has already retraced 80 +% from the historical maximum, marked in mid-May at $20.87.

What do you think about the recent THORChain hack attacks? Let us know in the comment section below.

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