THORChain Resumes Operations Weeks After $10 Million Exploit

THORChain's network is now operational again after a security check and upgrade period of over one month due to a hacking incident where $10.7 million (roughly Rs. 101.28 crore) was lost. This is as per an announcement made by THORChain through an X post. THORChain stated that it has restored its network, including trading, signing, swaps, and liquidity provider actions. The protocol announced on Sunday that it had established the safety of most of its vaults using the KeyVerify protocol, while other legacy vaults were decommissioned in preparation for new vaults.

Network Restarts Following Vault Verification and Security Upgrades

The network also indicated that it successfully verified the keyshare of all nodes. One of the biggest cross-chain trading platforms in the crypto sector that enables users to trade across networks like Bitcoin and Ethereum, THORChain has received a lot of attention from blockchain investigators due to security issues.

Post the THORChain attack, the blame was put on a problem with their GG20 threshold signature algorithm, which is used to protect the vaults of the protocol by sharing the control of the keys between different node operators. It is believed that the security loophole in the protocol allowed the malicious node operator to reconstruct the complete private key through “progressive key material leakage,” enabling the theft of $10.7 million (roughly Rs. 101.28 crore). 

Emergency patching of the protocol was done on May 20, before the upgrade released on June 9 that included patching of the vulnerability exploited. A follow-up upgrade was launched on June 11 that involved stability updates and patches of the KeyVerify protocol. 

Except for THORChain, other DeFi protocols have also been under the cloud of crypto hacks for the entire second quarter of 2026, as data shows that Q2 2026 is already the most hacked quarter on record in terms of the number of attacks, with 83 hacks, as per the analysis from market insights provider Unfolded based on data from DefiLlama. KelpDAO's $293 million (roughly Rs. 2,774 crore) hack and Drift Protocol's $280 million (roughly Rs. 2,652 crore) exploit were the largest incidents of the quarter.