Markets
Share this article

Blockchain Protocol Thorchain Suffers $8M Hack

Thorchain told CoinDesk a hacker deployed a custom contract that was able to trick its Bifrost Protocol into receiving a deposit of fake assets.

By Sebastian Sinclair
Updated Sep 14, 2021, 1:29 p.m. Published Jul 23, 2021, 1:11 a.m. 1 min read
jwp-player-placeholder

Thorchain has been hit by another exploit, this time costing around $8 million, Thorchain confirmed to CoinDesk on Thursday.

  • Thorchain also told CoinDesk a hacker deployed a custom contract that was able to trick its Bifrost Protocol into receiving a deposit of fake assets.
  • The network then processed a refund of real assets to the hacker.
  • Last week, the protocol was drained of around 4,000 ether in a separate breach.
  • Following last week's hack, Thorchain said it had been audited by multiple blockchain security companies to locate bugs in a given network.
  • "There were really only two options. Launch and accept the risk of issues, or not launch and stay in the 90% complete audit-review cycle for another six months. Both are difficult," Thorchain said.
  • "There's a constant battle for these smart contract securities firms to keep up with hackers," Daniel Kim, head of capital markets at Maple Finance, told CoinDesk via Telegram. That said, the DeFi (decentralized finance) industry is still nascent ... these issues lead to solutions."

Read more: BurgerSwap Hit by Flash Loan Attack Netting Over $7M

HacksExploitsThorchain

More For You

Hyperliquid is emerging as a challenger to traditional exchanges and prediction markets, says FalconX

By Helene Braun, AI Boost|Edited by Stephen Alpher
1 hour ago
REX Shares has launched a first-of-its-kind convertible-bonds exchange-traded fund (ETF). (Unsplash)

A new report shows Hyperliquid is rapidly expanding beyond crypto into pre-IPO markets, prediction contracts, and 24/7 asset trading, putting Wall Street giants on high alert.

What to know:

  • Crypto derivatives platform Hyperliquid is expanding beyond perpetual futures into pre-IPO trading, prediction contracts and tokenized real-world assets, putting it in more direct competition with traditional exchanges and prediction markets.
  • FalconX said Hyperliquid’s HIP-3 and HIP-4 markets, along with strong inflows into new HYPE exchange-traded funds and a USDC partnership...
Read full story