THORChain token (RUNE) gained around 15% over the past 24 hours to roughly $0.64 after the protocol restored cross-chain swaps. The recovery reopens transaction routes between blockchains that were previously completely shut down.
According to THORChain’s status page, trading operations and transaction signing are now back to normal on 10 of its 13 external networks. The reactivated networks include Bitcoin, Ethereum, Bitcoin Cash, Dogecoin, Litecoin, Tron, Zcash, as well as Avalanche, Base, and XRP.
However, the recovery is not yet fully complete. Three other networks, namely BNB Smart Chain, Cosmos Hub, and Solana, remain suspended and under warning status. Users across those three ecosystems cannot swap assets until further testing is completed.
The root cause that temporarily crippled the protocol stemmed from a brief anomaly on Ethereum’s base layer.
How a One-Block Reorg Triggered a Double Payout
The technical glitch originated from a one-block reorganization (reorg) event on the Ethereum network. This reorg erased a 10 Ether deposit that had already been recorded in THORChain’s internal ledger.
The situation became further complicated when the swap transaction failed to meet its specified price limit. Because the trade failed, the protocol automatically processed a refund. The problem was that the system issued a refund for assets that had never entered the vault, followed by a refund of the sender’s original deposit. As a result, a 10 ETH double payout occurred, which immediately triggered the protocol’s automatic halt mechanism.
In response to the incident, node operators agreed to temporarily freeze all transaction activity. The freeze was enacted to give developers time to fix the code vulnerability that triggered the double refund.
Stolen Asset Flows Also Delayed
The sudden shutdown of the entire THORChain network also produced unexpected ripple effects outside the ecosystem. A report from analytics firm Chainalysis noted that the protocol freeze inadvertently delayed the movement of stolen funds from the $6.3 billion Binance exchange hack carried out by North Korean hackers.
For market participants, reopening 10 networks restores major swap routes, while a full resolution still depends on addressing the remaining three networks.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
