The THORChain protocol lost an estimated $4.9 million in Ethereum due to a hacker attack. To eliminate the consequences of the incident, all operations on the THORChain were suspended based on the consensus of the nodes.
DeFi project THORChain is a popular DEX that allows you to exchange assets in a decentralized environment.
Earlier, the project team reported that attackers withdrew 13,000 ETH from the protocol (24.76 million at the time of writing). Then later the team announced that hacker stole 4000 ETH ($ 7.62 million).
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
According to the data collected by the community, the damage was less than $5 million.
The community put together a doc on the attack on @THORChain today. If you add up the assets stolen, it amounts to less than $5m USD.https://t.co/y2n7scjls7
— Chad Barraford #BRINGTHECHAOS (@CBarraford) July 16, 2021
The project team promised to inform community with complete details once they found out what happened. . At the moment it seems that attackers were able to “trick” the Befrost service, which is responsible for connecting nodes to blockchains and releasing witness transactions.
ETH Bifrost was tricked using a custom wrapper to read a deposit amount of 200 when it was actually zero. More details will be provided in the upcoming post mortem blog.
2/5 Method:
ETH Bifrost was tricked using a custom wrapper to read a deposit amount of 200 when it was actually zero. More details will be provided in the upcoming post mortem blog.
— THORchain.BULL (@THORmaximalist) July 16, 2021
Project CTO Chad Barraford said the THORChain team had already found a bug in the codebase and made a proposal to improve the protocol. If the community approves the changes, the developers will implement the patch and resume online operations within 24 hours .
The bug in the code has been found by the team and a PR has already been opened to resolve the prob. If the community approves the change, the fix to @THORChain will be pushed out and trading resumed in ~24hrs I'm guessing. $RUNEhttps://t.co/g3AYszG8Gi
— Chad Barraford #BRINGTHECHAOS (@CBarraford) July 16, 2021
The project team noted that the THORChain reserve fund will have sufficient funds to cover losses of Ethereum liquidity providers. However, the developers asked the Hackers to contact them to discuss the return of funds and the payment of an adequate reward for the discovery of the vulnerability.
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