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ThorChain Lost $5M in Crypto Assets

ThorChain, a decentralized liquidity protocol, har suffered from an exploit that led to the loss of approximately $4,9 million of crypto assets in Ethereum and ERC20 tokens.

An unfortunate event happened on July 15. A hacker used a vulnerability in the latest ThorChain’s upgrade ‘Chaosnet’, aimed to maintain cross-chain swaps across Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Binance Chain networks.

As was explained by one of the ThorChain developers, ETH Bifrost was tricked using a custom wrapper to read a deposit amount of 200 when it was actually zero. When a community deveoper noticed this issue, anonymous nodes voluntarily made commands to stop their nodes to protect the network. The whole network was halted, once more than one third of the nodes has stopped.

ThorChain has already announced its recovery plan. The network was started today as soon as the patch was released. The team promised to replenish stolen funds on the Ethereum pool to restore lost funds to LPs, release an auto-solvency checker as a preventative measure and conduct an audit to solve this issue.

As was mentioned on ThorChain Telegram channel, the project has enough funds to cover the cost of an exploit. However, the administrators requested the attacker to get in contact with the team to discuss the return of funds for a bug-hunter’s bounty.

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