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Second hack in one week: ThorChain suffers hack worth $8M

TL;DR

TL;DR Breakdown

  • The exploitation of the ThorChain led to the loss of a whopping $8M.
  • The details are yet to be revealed as the hackers haven’t been located or identified.
  • Although the members guarantee increased scrutiny, it seems that protocol has security issues.

ThorChain has been a favorite DeFi protocol for plenty of developers, but right now, it seems to be going through a very rough patch. Today, in the morning hours, supposedly a whitehat hacker(s) broke in to exploit the DeFi protocol.

This is not the first incident in the world of cryptocurrencies and not the first for ThorChain. The protocol was also attacked earlier this week, and this is the second attack as the chain was given little time to recover.

ThorChain lost $16 million

The protocol was earlier attacked wherein around 4000 ETH tokens were stolen, leading to the loss of around $8 million as ETH is currently trading above $2K, i.e., three percent up from yesterday’s price.

With this deep loss, the protocol members are unwilling to give up and promise to be back with strong security and decreased vulnerabilities. The attackers were successful as they could figure out a vulnerable position of the “ETH router.”

Hacker was a whitehat

The members of TronChain say that the hacker was careful enough not to impact too much of the protocol, which means that the hacker was actually whitehat. The members have thanked the hacker for their support as they exposed the vulnerability.

The hackers have demanded a 10 percent prize for their efforts that amounts to around $800,000, which will be provided when the hacker surfaces to claim the rewards.

However, these two instances have damaged the reputation of Thorchain as a secure protocol in the blockchain industry.

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Dennis Mugambi

Dennis is a content writer with a deep understanding of the blockchain domain and cryptocurrency field. He infuses cold data with flair to make technology and finances mind-blowing. His reports both fascinate and awaken the readers.

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