It has been claimed by a white-hat hacker that it has mercifully spoiled $8 million of THORChain to teach them a lesson. THORChain is a decentralized exchange that has undergone the second hack that cost it several million dollars worth of Ether during many recent weeks.
THORChain announced that the attack was executed by a white-hat hacker who had demanded a bounty of over 10%. It added that the operations of ETH would be blocked until the code is audited. It further stated that the liquidity providers which were influenced by the attack would be substituted by utilizing the treasury funds of the project. The required bounty, it revealed, would be given to the hacker, and these activities should be appreciated. It closed the tweet by mentioning that the community is in severe pain currently, and despite having the funds to cover the loss, it would prefer to slow down its course of proceedings.
The firm, which is in the process of launching its beta version named Chaosnet, acknowledged that the complications in handling its machine have turned out to be the Achilles heel of THORChain. Nonetheless, it focused that the problems can be resolved if the developer procedures are keenly examined along with the peer-review.
The hacker claimed that the damage was deliberately minimized to teach a lesson to THORChain. It advised the organization not to run hastily to a code controlling nine figures as well as halt the proceedings until the audits are executed completely. The hacker noted additionally that it was in a position to steal Lycacoin, Binance Coin, Bitcoin, Ether, and a lot of BEP-20 tokens. It pointed toward the numerous critical issues which had been found and assured that a bug bounty of 10% would be sufficient to avoid the attack.
It has been reported on 16th July that the company had been stopped after the drainage of more than $7.6M worth of Ether (4,000 ETH) out of the protocol. The bug bounty was unsuccessfully proposed by the protocol to the hacker as a deal for regaining the stolen amount. Another loss had befallen on the exchange in the previous month, which took $140,000 from it.
In April this year, THORChain initiated the launch of its guarded Chaosnet, which would enable it to make cross-chain swaps between Bitcoin Cash, Litecoin, Ethereum, Bitcoin, as well as the networks of Binance Chain.