THORChain Halts Trading Following Suspected Security Breach

THORChain has issued an emergency announcement, stating that trading has been suspended on its network due to a suspected breach of an Asgard vault. According to Odaily, initial reports indicate that user funds remain unaffected, with losses primarily impacting the protocol's own assets. The system automatically detected unusual activity and halted signing operations, alerting the community and preventing further asset outflow. An investigation is ongoing to determine the root cause and full extent of the vulnerability. The incident involves one of the six Asgard vaults, with estimated losses around $10.7 million. Additionally, the staking RUNE of the related node was slashed due to unauthorized transaction triggers. Network churn operations have been paused, and the launch of new chains and related features has been delayed until stability is restored. THORChain has stated that no cross-chain transactions by users have been affected. Node operators have been instructed to thoroughly inspect infrastructure, security key management, and abnormal activities, and to submit relevant logs to assist in the investigation.