THORChain suffered $8 million hacks from whitehat but it’s only a lesson? The team now made 2 difficult choices
As AZCoin News reported decentralized, liquidity protocol THORChain suffered a $4.9 million exploit. The compensation plan has not been implemented yet, the cross-chain decentralized exchange continues to suffer its second multi-million-dollar hack in as many weeks, with $8 million worth of ETH affected. The team then presented two options but both were difficult.
THORChain has been hit by another exploit, this time costing around $8 million
A hacker deployed a custom contract that was able to trick the Bifrost into receiving a deposit of fake assets. According to the announcement on Twitter, the hacker deliberately limited their impact. ETH will be halted until it can be peer-reviewed with audit partners, as a priority. Liquidity providers impacted by the exploit will be subsidized using the project’s treasury funds. In addition, the team said the whitehat requested a 10% bounty and they agreed if hackers contacted. It was fairer to describe the incident as a “grey hat” exploit rather than a white hat one.
At the present time, the exchange is still in the middle of a staged beta launch called Chaosnet with the complexity of its state machine. Today’s attack appears to be intended to teach THORChain a lesson, used: “Do not rush code that controls 9 figures,” and “Disable until audits are complete”, according to a message that appears to have been sent to from hackers.
The hackers added that they could have stolen ETH, BTC, Binance Coin, Lycancoin, and more BEP-20 tokens if they wanted to. There were “multiple critical issues” found and that a 10% bug bounty could have prevented the incident.
The message from hacker | Source: zillaQuest
At the moment, THORChain worked with Peckshield to audit the router. They then claim that no issues causing fund loss were found.
“There were really only two options. Launch and accept the risk of issues, or not launch and stay in the 90% complete audit-review cycle for another 6 months,” the team stated. “Both are difficult.”
RUNE/USD 4-hour chart | Source: TradingView
At the moment, RUNE price is down 8%, trading at $3.85.
- THORChain Treasury Will Cover Affected Users But Correct The Damage For Only About $4.9 Million In Ethereum
- THORChain Suffered An Attack That Drained About 4,000 ETH ($7.6 Million), RUNE Price Dropped 20%