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THORChain Resumes Operations Weeks After $10 Million Exploit

THORChain Resumes Operations Weeks After $10 Million Exploit

Protocol restores trading and swaps following security upgrades.

Written by Rahul Dhingra, Edited by David Delima | Updated: 24 June 2026 15:50 IST

THORChain Resumes Operations Weeks After $10 Million Exploit

Photo Credit: Unsplash/Sasun Bughdaryan

The recovery process included node verification and vault migration efforts

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Highlights

THORChain restores trading, swaps, and liquidity functions
The KeyVerify protocol is used to validate most network vaults
The attack was linked to the GG20 signature algorithm flaw

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.

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Trading is live again on THORChain.

After more than a month offline, the network is fully back. Signing, churning, secured and trade assets, LP actions, and swaps are all up and running. The world's leading Bitcoin DEX is open for business once again.

This recovery was never…
— THORChain (@THORChain) June 23, 2026

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.

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Further reading: Crypto Scams, Crypto Hacks, Cryptocurrency

Rahul Dhingra

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Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More