Defi protocol THORChain loses $8 million in “seemingly whitehat” attack

THORChain tweeted that “The hacker deliberately limited their impact, seemingly a whitehat.”

There is a second data breach in THORChain’s security system. For your information, THORChain is a cross-chain DeFi protocol that was hacked last week for the first time and suffered a loss of $8.3 million. Now it has been hacked again, and this time, attackers managed to steal $8 million worth of cryptocurrency Ether.

Sophisticated attack on THORChain’s ETH router

According to THORChain, the decentralized exchange has become a victim of a sophisticated attack on its ETH router. The protocol took to Twitter to announce the hack and the amount it lost this time around.

On July 23rd, the exchange tweeted:

THORChain has suffered a sophisticated attack on the ETH Router, around $8m. The hacker deliberately limited their impact, seemingly a whitehat.

Tweets from THORChain

The whitehat requested a 10% bounty – which will be awarded if they reach out, and they should be encouraged to do so.

It is a tough time for the community and project, and the pain is real.

The treasury has the funds to cover, but it's time to slow down.

— THORChain (@THORChain) July 23, 2021

However, the team claims that the damage has been fairly limited this time, and they believe it to be a whitehat attack. The attackers have also requested a 10% bounty. The exchange plans to halt the amount of ETH until it gets the funds peer-reviewed with its audit partners.

Hacker (s) exploited “Multiple Critical Issues”

The unidentified hacker (s) warned the exchange that they have identified multiple critical vulnerabilities and could have caused greater damage like taking away larger amounts of Bitcoins, Binance Coin, Lycancoin, and other cryptocurrencies.

THORChain stated that they are concerned about the repeated cyber attacks as it impacts its reputation in the community and affects the project’s reliability. Though the lost funds can be covered by its treasury, the DeFi protocol would want to end this problem.

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