THORChain suffered an attack that drained about 4,000 ETH ($7.6 million), RUNE price dropped 20%
THORChain is currently on hiatus after the protocol was hacked. Of which, the estimated loss amounted to $7.6 million, or 4,000 ETH. Immediately after this news was announced, the price of RUNE plummeted 20%, from $5.52 to $4.6. However, RUNE has since rebounded a bit and is trading at $5,013 at press time.
RUNE/USDT 4-hour chart | Source: TradingView
THORChain announced it has been attacked, estimates of the theft vary between $7.6 and $25.1 million
Initially, the administrators of the project Telegram group reported a loss of up to 13,000 ETH, or $ 25.1 million. Not long after, the official THORChain Twitter channel updated the change in the damage of the attack, only about 4,000 ETH.
At this stage the estimate is around ~4000 ETH worth of assets (ETH/ERC20) was taken, not 13k ETH.
More detailed assessment and recovery steps will be announced soon.
The users who suffered (LPs) will be made whole in the coming weeks. https://t.co/LR2x8VZ2kx
— THORChain #ACTIVATETHESYNTHS⚡️ (@THORChain) July 15, 2021
This announcement reduced the severity of the attack to just over $7.6 million at current ETH prices. It is unclear whether the project’s social media accounts are run by the same people.
“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,” the project’s administrator announced in the Telegram group.
Announcement on THORChain Telegram channel, you can see the statement has been edited | Source: THORChain Announcements
At the same time, THORChain reassures that user funds are safe and will be refunded once the problem is fixed and the network resumes. At the moment, the THORChain network has been paused to review the error and investigate the extent of the violation.
This is a disappointing moment for 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.
— THORChain #ACTIVATETHESYNTHS⚡️ (@THORChain) July 16, 2021
THORChain is a protocol for trading crypto assets, such as Bitcoin and Ethereum, across different blockchains without using a middleman. It does this by including its native token, RUNE, in every trade. To go from Bitcoin to Ethereum, for example, you would swap BTC for RUNE, then RUNE for ETH.
Though the double-swap adds an extra step, it helps ensures that THORChain remains decentralized. Decentralized finance, or DeFi, is the catchall term used for blockchain-based protocols that can do complex financial transactions like loans and swaps without intermediaries. The project promises to publish a more detailed assessment and recovery steps for the platform as soon as they are ready.
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