RUNE Coin Loses 11% After Hackers Drain $7.6M From THORChain's 'Chaosnet' Exploit

What Happened: Decentralized liquidity protocol THORChain RUNE/USD halted operations after losing $7.6 million in a recent exploit.

The protocol estimated a loss of around 4000 ETH ETH/USD, which was compromised as a result of a hack on its blockchain.

At this stage, the estimate is around ~4000 ETH worth of assets (ETH/ERC20) was taken, not 13k ETH.

More detailed assessment and recovery steps will be announced soon.

The users who suffered (LPs) will be made whole in the coming weeks. https://t.co/LR2x8VZ2kx

— THORChain #ACTIVATETHESYNTHS� (@THORChain) July 15, 2021

“While the treasury has the funds to cover the stolen amount, we request the attacker get in contact with the team to discuss return of funds and a bounty commensurate with the discovery,” said the THORChain team in a Telegram post.

THORChain’s native token RUNE fell by over 11% since the news of the attack on the protocol, while trading volume for the asset was up by over 200% to $143 billion.

The team also published an analysis of the attack on the network and a recovery plan for the stolen funds.

The recovery plan is in motion:
1) Release the patch and restart the network, block the pending outbounds, restore solvency
2) Donate funds back into the ETH pool to restore the lost funds to ETH LPs
3) Release the automatic-solvency checker
4) Work with security firms to audit

— THORChain #ACTIVATETHESYNTHS� (@THORChain) July 16, 2021

“This is a disappointing moment for all, but LPs and Nodes should be unaffected after all is recovered (the funds will be restored),” said THORChain in a Twitter update, adding that “the network will be stronger and more resilient.”

Price Action: At press time, RUNE was trading at a price of $4.84, losing around 11% in a day.

The token is down by 76% from its all-time high ahead of $21, last seen in May.