The cross-chain liquidity protocol THORChain has suspended all trading activities on its network after new claims about a potential vulnerability in the network surfaced.
In a tweet on March 28, THORChain clarified that the measure was taken as a precautionary step while the reports are investigated for verification.
There are claims of a potential vulnerability with a THORChain dependency that may affect THORChain.
Out of an abundance of caution, trading has been paused while an investigation is undertaken.
The validity of the claim is currently being assessed and https://t.co/6a5NLAqefN…— THORChain (@THORChain) March 28, 2023
THORChain made the announcement shortly after a Twitter account named @Pluto9r tweeted that there were “credible reports” of a possible vulnerability in THORChain’s Nine Realms liquidity platform and dedicated security team, THORSec. @Pluto9r also stated that the THORChain network had been halted globally.
**THORChain Globally Halted**@ninerealms_cap and THORSec have received credible reports of a potential vulnerability affecting @THORChain. Out of an abundance of caution, steps have been taken to halt THORChain globally.
Stand by for more information.
— Pluto (9R) ⚡️???????? (@Pluto9r) March 28, 2023
The tweet received a response from Nine Realms, noting that the network had been “preemptively paused by NO’s [Node Operators] to investigate the report” and that further updates would be provided.
Network preemptively paused by NO’s to investigate the report; updates will follow. https://t.co/xHopP9Aufp
— Nine Realms (@ninerealms_cap) March 28, 2023
THORChain, established in 2018, is a decentralized liquidity protocol that enables users to exchange assets across various blockchain networks without the need for centralized exchanges.
THORChain’s settlement layer currently enables swaps between eight chains, such as Bitcoin, Ethereum, Binance Chain, Avalanche, Cosmos Hub, Dogecoin, Litecoin, and Bitcoin Cash.
This recent network pause experienced by THORChain is not unusual. The network was shut down in October 2022 due to a software problem that led to inconsistency between individual nodes. The network was able to restart operations and resume regular operation after 20 hours of maintenance.
THORChain also suspended its network in 2021 due to a breach in the protocol that resulted in the theft of $7.6 million worth of cryptocurrency assets by hackers. The extent of the damage caused by the attack is uncertain, as THORChain initially estimated that 13,000 Ether (ETH) valued at $25.1 million had been stolen but later revised the figure to 4,000 ETH, or approximately $7.6 million, as an estimated cost of damages. However, a review of stolen assets by the community implies that the actual amount may be closer to $6 million.
Thorchain did not provide a definite timeline for the duration of the platform’s suspension but promised to release updates as soon as they are obtainable.
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