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THORChain: $5 million in Ethereum stolen in a hack
THORChain: $5 million in Ethereum stolen in a hack
Security

THORChain: $5 million in Ethereum stolen in a hack

By Amelia Tomasicchio - 16 Jul 2021

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Due to a hack that occurred last night, THORChain has currently been put on hold. The hack caused a loss of as much as $5 million in Ethereum (ETH).

The DeFi project discovered a vulnerability on its Chaosnet last night. This had been exploited shortly before to steal Ethereum worth close to $5 million. Initially, estimates were much higher, approaching a figure of 13,000 ETH, but it turned out to be fortunately lower.

What is THORChain and what will happen after the hack?

For the uninitiated, this project is part of decentralized finance (DeFi), which focuses on creating interoperability between different protocols such as Bitcoin and Ethereum.

A few hours ago, Chad Barraford, the CTO of the Skyy Network project explained that if the project community votes soon, within 24 hours the platform should be up and running again:

This tweet was republished by THORChain on Twitter, so it is expected that the protocol will be back online shortly.

In the meantime, THORChain’s native token, the RUNE utility token, is currently down 17% in the last 24 hours, according to CoinMarketCap data, although it is not particularly losing out looking at the last month’s data. In fact, over the past 30 days the price has always been around $4.

In the meantime, the THORChain team has explained that it has enough funds to compensate clients for their losses.

Furthermore, on Telegram, the team promised to work more on the security of the protocol and that they will do more audits.

“This is a disappointing moment for us all, but LPs and Nodes should be unaffected after all is recovered (the funds will be restored). The network will be stronger and more resilient.”

 

Amelia Tomasicchio
Amelia Tomasicchio

As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for Cointelegraph and CMO at Eidoo. She is now the co-founder and editor-in-chief of The Cryptonomist. She is also a marketing teacher at Digital Coach in Milan and she is about to publish her first book about Blockchain Marketing.

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