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THORChain hacked for $8million by White hat hacker

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Intro: THORChain has been hacked for $8million and the hacker said it has hacked the exchange to teach it a lesson. 

To teach THORChain a lesson, the White Hat Hacker claimed to have minimised the damage to the cross-chain decentralized exchange of $8million. This is the second time the multi-million dollar hack has come into the limelight. It is worth the ether impact. 

The exchange has been exploited for the third time in a month. It had brought total losses to around $13million. 

THORChain has stated that the perpetrator had requested a 10% bounty. ETH will be halted until the close has been audited. Liquidity providers impacted by the exploit will be compensated using the treasury funds of the project.

The exchange is still in the middle of the staged beta launch named chaosnet- conceded that the complexity of the state machine comprises of THORChain’s archille’s heel. However, the platform feels that the issues can be solved with more eyes on, as well as a rethink in developer procedures and peer review. 

Hacker warned THORChain

The discord project forum has shown a screenshot which highlights the message forwarded to the project by the hack via transaction data. The hackers claim that they purposely minimized the damage in a bid to teach a lesson to THORChain. 

The hackers warned THORChain not rush code that controls 9 figures and disable it until audits are completed.  The hacker added that they could have taken ether, bitcoin, binance coin, Lycancoin, and various other BEP-20 tokens if they had desired. 

There were multiple critical issues and a 10% bug bounty could have prevented the incident. The exchange had been halted after 4,000 ether worth $7.6 million was drained from the protocol. 

It gave a bug bounty to the hacker in exchange for paying back the stolen funds. The decentralized exchange has also lost $140,000 in another exploit suffered last month. THORChain launched Chaosnet in April and allowed cross-chain swaps across the Bitcoin, Ethereum, Litecoin, Bitcoin cash, and Binance Chain Networks. 

Thorchain has acknowledged that it had suffered an attack and the hacker knowingly limited its impact. THORChain will keep the network halted for now as it reviews the code. Later the exchange will restore the solvency. Once everyone is satisfied with the security of the network, it will be restarted. Though a specific date has not been given to start each stage. 

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