WuBlockchain
Chainalysis said an Ethereum chain reorganization on the morning of October 31 (EDT) led THORChain to issue a double refund after a user deposited 10 ETH. The incident triggered an emergency pause that blocked cross-chain swaps through most of the protocol’s bridges.
Why it matters
The pause affected all THORChain users, including North Korean money launderers. Chainalysis said it inadvertently delayed laundering a significant amount of funds stolen from Binance.
Market impact
The episode highlights how a chain reorganization can produce unexpected outcomes in cross-chain systems, including emergency service interruptions. The pause’s stated scope was most THORChain bridges; the seed gives no duration or information about when swaps resumed.
Frequently asked questions
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What triggered THORChain’s emergency pause?
Chainalysis said an Ethereum chain reorganization led THORChain to mistakenly issue a double refund after a user deposited 10 ETH.
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How widely did the pause affect THORChain swaps?
The pause blocked cross-chain swaps through most of THORChain’s bridges for all users.
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How did the pause affect funds stolen from Binance?
Chainalysis said the interruption inadvertently delayed laundering a significant amount of funds stolen from Binance.
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When did the Ethereum reorganization occur?
Chainalysis placed the reorganization on the morning of October 31, EDT.
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Does the report say when THORChain swaps resumed?
The report describes the emergency pause but does not give a duration or say when swaps resumed.
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