THORChain is a cross-chain DEX (decentralized exchange) that has now been the victim of a cyber-attack for a whopping 3rd time in 2021 and also the 2nd time in the last seven days. The DEX is unfortunately just the latest victim in a list that seems to be growing every week as the number of hacks and cyber-based attacks on many protocols, exchanges, projects, and even entire companies continue to show no signs of slowing down.
As always, the announcement had initially come via Twitter when THORChain representatives had posted earlier today that the attack had indeed occurred, only seven days removed from the previous attack through which the DEX had been exploited for a considerable sum of $5 million in what was eventually revealed to be yet another maneuver that utilized that flash-loan exploit technique.
Last week $5 million, this week $8 million
Things have gone from bad to worse for THORChain as it continues to lose millions of dollars due to these attacks. This time, the attack had been conducted via an alleged well-meaning white-hat hacker, who has since requested a bounty of 10%.
THORChain is thus weighing the different options currently available and has stated that the aforementioned bounty shall be awarded provided that the hacker reaches out first, which is something that the DEX has strongly encouraged. Representatives have said that it is understandably a very tough period right now for THORChain’s community and that although there are funds that can be used to cover the losses thanks to the treasury, it might nevertheless be time to perhaps slow down a little. As such, all systems will therefore be suspended until further notice and until THORChain’s code can be appropriately and fully audited. The seemingly benevolent hacker would appear to be trying to make a point, which is why the damage caused by the attack was limited, and even this person had encouraged the team to properly finish the audit before resuming normal functionality.
In related news, THORChain had also been the victim of an attack in June, where the hackers had made off with about $140,000.
Native token’s price decreases
It goes without saying that the attacks have adversely impacted RUNE’s (the native token of THORChain) price, wherein a decrease of 27% had occurred to a bottom of around $3.50 from a high of about $4.80. Now, 38% has been lost in the past fortnight because of the recent two incursions.
THORChain’s overall value locked had been $101 million, and it has now suffered a loss of a massive 30% of its total collateral ever since it had peaked on the 7th of July.