Hardware Ready Ready to Bench?
The decentralized network THORChain suspended swap functions on ten different blockchains due to a technical defect related to block reorganizations. The incident, which occurred while analyzing transactions following the Binance hacking, temporarily interrupted the flow of funds to the attackers’ wallets. According to reports from Cointelegraph and Block Media, the suspension involved major networks such as Bitcoin, Ethereum, Solana, and Tron.
Why it matters
The interruption was not ordered by authorities but resulted from an error in the automatic payment capacity verification mechanism. A reorg on the Ethereum network triggered a detection of asset shortage, blocking swaps that then extended to other networks after about two minutes. This technical glitch delayed the laundering of funds stolen from Binance by the North Korean group TraderTraitor, identified by the FBI as responsible for the attack. THORChain clarified that it cannot selectively block specific wallets and can only suspend the entire network via node vote in case of security issues.
The numbers
On-chain analyses indicate that hackers moved $242 million on the Tron network in the two days following the theft. Another $194 million was transferred across various blockchains via cross-chain services, including $48 million via Relay and $44 million through THORChain. During these transfers, the value of the funds decreased by approximately $22 million, equal to 9.1% of the total moved, due to fees, slippage, and volatility. Specific losses for transactions on THORChain are estimated at around 12%. Additionally, affiliate fees of 145,800 RUNE were recorded, valued at approximately $95,000 at the time of the event.
What remains to be understood
The entire value drop cannot be attributed exclusively to confirmed fees, as the estimate also includes price variations and slippage. Furthermore, sources do not specify the exact date of the initial hacking, referring to transfers only as occurring in the two days following the main event.
Sources: Cointelegraph, Block Media.
This article is for informational purposes only and does not constitute financial advice or an investment recommendation.
* Content created with the assistance of artificial intelligence systems.