THORChain DeFi protocol suspends due to potential vulnerability

The project’s security system is being investigated and verified at the moment

28.03.2023 - 09:00

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What’s new? On March 28, the team of the THORChain multichain liquidity protocol announced the suspension of trading for an indefinite period. This step was taken after reports of a potential vulnerability that could affect the operation of the protocol surfaced. The developers assured users that their funds are completely safe.

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

What is known about THORChain? The decentralized finance (DeFi) protocol was created in 2018 and can be used to exchange crypto assets between different networks. In this, users retain ownership of their assets at every stage. As of March 28, 08:45 UTC, the native token RUNE has a capitalization of $431 million and the asset is trading at $1,32, down by 4,7% in 24 hours (Binance’s data).

What else is known? At the time of writing, the THORChain team has not released details of the incident but has said that it is continuing to verify the validity of the threat claims. The project will publish updates on its media resources as information becomes available.

THORChain already experienced a technical glitch in October 2022 that caused the protocol to shut down for 20 hours. Then the cause of the incident was a “unique transaction type” software error that disrupted communication between nodes and prevented new transactions from being verified on the network.

On March 24, crypto exchange Binance suspended spot trading, as well as deposit and withdrawal of funds for 2,5 hours due to a failure in the stop order mechanism.

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