THORChain Halts Swaps After Network Reorganization Glitch
Protocol pauses operations across ten networks following a refund error that also blocked money laundering attempts linked to Binance.
THORChain node operators paused asset swaps across ten distinct networks last Saturday. The measure followed an Ethereum block reorganization that exposed a flaw in the protocol's refund system.
The issue emerged when the Ethereum network replaced a recent block with another. The THORChain system processed a refund for a deposit that was not finalized on the mainnet. This resulted in an improper payment of 10 ETH and triggered an automatic security pause.
The flaw allows malicious actors to request refunds for payments that the Ethereum network no longer recognizes. The protocol team reported that the vulnerability can be exploited whenever an external block reorganization occurs.
Affected networks include Bitcoin, Ethereum, Solana, and Tron. Service remains suspended on these chains while operators assess security to resume operations. Trading remains active only on Avalanche, Base, and XRP.
The technical outage inadvertently blocked money laundering attempts linked to the recent attack on Binance. North Korean hackers, identified as responsible for the theft, lost access to THORChain swap bridges during the forced downtime.
United States authorities have intensified pressure on crypto infrastructure providers to prevent the circulation of stolen funds. The FBI has requested that decentralized finance services block specific addresses associated with the TraderTraitor group.
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