THORChain operates as one of the most popular cross-chain DEXs. THORChain faced an attack in which 4,000 Ethereum was stolen.
The THORChain team provided a quick response to find the stolen ETH error. It will release a fix that will be implemented within 24 hours if approved by the community.
THORChain, one of the most popular cross-chain decentralized exchanges (DEXs), has experienced a similar attack before. He announced the loss on Twitter. It turned out that the attacker tricked ETH Bitfrost using a special wrapper contract. The team promised to bring the lost funds back to ETH liquidity providers.
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
THORChain developers initially said that the attackers stole 13,000 ETH. Later in the statement, they corrected and said that there was a loss of 4,000 ETH. ThorChain team quickly halted the network to investigate how to fix the vulnerability quickly
The team discovered that the attack was done on ETH Bitfrost, which recently “allows the router to be wrapped in contracts.
ThorChain developers said:
The attacker then tricked Bifrost by using a special wrapper contract when they transferred 0 ETH.
In response, the team did an update and then restarted the network. The system blocked sales for a while, then restored its solvency.
“Return the money and we will compensate you”
The team told investors that they had enough resources to make up for lost funds. The attacker urged him to return the stolen funds and said he would be paid as a reward.
After the loss, the nodes and liquidity providers in the network made millions from the exploit.
The THORChain team explained:
About $1.4 million of the attacker was captured by the nodes. $1.4 million seized by ERC20 LPs. Only affected users are ETH LPs and these will be consolidated. Therefore, despite the exploit, Nodes, LPs and Arbers will continue to profit significantly.
The THORChain RUNE coin was heavily hit by the loss.
RUNE has dropped about 18% in the last 24 hours, according to our data. At the time of writing, it is trading down from $5.83 to $4.70. The token currently has a market cap of $1.09 billion. RUNE ranks as the 65th largest crypto in the market.
THORChain launched Chaosnet in April. It announced its platform that allows native crypto assets to be traded on the DEX via the unique blockchain without bridging technology and wrapped tokens. It facilitates exchanges between Bitcoin, Ethereum, Bitcoin Cash, Binance Smart Chain and Litecoin blockchains.
Erik Voorhes, the founder of ShapeShift and a crypto giant, touted the launch as one of the biggest events in crypto this year.
Erik Voorhes announced in the following tweet:
Local cross-chain decentralized exchange THORChain goes live tomorrow. It’s never been done before.