Thorchain will reimburse affected users for $ 5 million through the Treasury Department

An attack on Thorchain severely affected Ethereum’s liquidity providers. The minutes say that the treasury will pay affected users.

Thorchain, a cross-chain trading platform on various blockchains without the need for intermediaries, promised on Twitter that users affected by yesterday’s $ 5 million hack will be fully compensated.

“The only company bearing the brunt will be Thorchain’s Treasury Department, approximately $ 5 million that will be used to pay Ethereum’s liquidity provider (LP). This is the Treasury Department’s purpose during Chaosnet to secure funds for the network. “

The network’s nodes were halted on Thursday (July 15) after it was discovered that around 13,000 ethers ($ 25 million) had disappeared as a result of the attack. Thorchain then corrected the loss number to only around 7.6 million US dollars in Ether and ERC20 tokens. But in a later post on Telegram, Thorchain again adjusted the total damage from the attack to $ 4.9 million.

An in-depth investigation of the attack is ongoing, according to an attached post in the Project Telegram group. Meanwhile, they say the attacker was able to outsmart the protocol’s bridge to the Ethereum blockchain, known as ETH Bifrost, for transferring Ether while it was not transferring yet.

Thorchain is a component of DeFi that is built on the Cosmos network and enables different blockchains to share data with each other.

According to Thorchain, LPs are the only affected users. LPs are users who take the cryptocurrency they hold – Thorchains native RUNE – and deposit it into the network. The network can then use these funds to facilitate transactions while the LP cuts the action.

In this case, however, the LPs were affected.

This isn’t the first time Thorchain has been hacked. At the end of June, after a “logical error in ETH Bifrost”, an attacker made Ether and ERC20 tokens worth 140,000 US dollars.

Thorchain’s developers seem unfazed, saying that this is precisely why a treasury exists. It’s all just part of Chaosnet, which was released in mid-April. Multchain Chaosnet, MCCN for short, allows anyone to swap (swap) assets on five different blockchains: Binance Chain, Bitcoin, Bitcoin Cash, Ethereum and Litecoin.

Chaosnet is not a mainnet, but more of a sandbox as Thorchain is working to strengthen the protocol.

Thorchain said that after patching and restarting the network, funds will return to the ether liquidity pool.

“This is a disappointing moment for everyone, but LPs and Nodes will not be affected once they are all restored (money will be restored). The network is getting stronger and more resilient. “

Teacher

After decryption

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