THORChain has disclosed a $10 million hack of its cross-chain protocol, but no user compensation plans are in place, despite rampant scams.
THORChain has reported a major breach of its cross-chain protocol, resulting in a theft valued at $10 million. The developers have also clarified that they will not be initiating any compensation programs for affected users.
According to security firm PeckShield, the hack involved the theft of 36.75 BTC and around $7 million worth of EVM tokens from the Ethereum, BNB Chain, and Base blockchains. In response to this incident, THORChain has halted all protocol operations, which includes freezing trading options and liquidity pool transactions.
The suspected attack vector exploited a weakness in the GG20 TSS threshold signature scheme, allowing the hacker to access confidential data regarding multisig vault keys. This breach enabled the unauthorized reconstruction of a private key, resulting in the stolen funds.
“The team is continuing to work on a comprehensive recovery and network restart plan,” THORChain stated, noting that it may take several days or longer to resume full functionality.
While developers insisted that user funds remain safe and unaffected, they have warned users against falling for various scams circulating online that promise refunds. They emphasized, “THORChain is currently not conducting any refund programs, airdrops, or compensations.”
One fraudulent site purporting to be linked to the THORChain Foundation claims to facilitate refunds for affected wallets, stating a limited “window for refunds” of 21 days. However, many users have flagged this as a scam, urging others to exercise caution.
This incident follows an alarming trend in the crypto industry, which saw over 20 hacks in April alone, resulting in a staggering $651 million in losses.
