THORChain Suffers $7.6 Million Loss in Latest DeFi Exploit

This article has been indexed from E Hacking News – Latest Hacker News and IT Security News

Popular cross-chain liquidity exchange THORChain got compromised in a new DeFi hack where $7.6 million were stolen, suffering a second security breach in less than a month. 

THORChain announced the security breach on Twitter and initially estimated the loss at about 13,000 ETH (around $25 million). Later, however, this was revised on Twitter, with the project claiming, “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.” 

According to the project team, attackers exploited the vulnerability in the Bifrost protocol which allowed them to redirect ETH tokens to their own accounts. Bifrost is a multi-chain DeFi protocol that enables multichain connectivity by building a bridge between blockchains. Bifrost ETH was recently updated for better composability.

In the THORChain community Telegram channel, administrators have suggested the project has the funds needed to cover users’ stolen assets but articulated a preference for the hacker to return the stolen funds in exchange for a bug bounty.