THORChain halts cross-chain swaps after Ethereum reorg exposes refund bug

THORChain suspended swaps across several major blockchains on Saturday after a block reorganization on Ethereum uncovered a vulnerability in the protocol’s refund logic. Blockchain analytics firm Chainalysis said the emergency shutdown may have also inadvertently delayed the movement of funds linked to a recent $6.3 billion Binance hack. The pause began at 11:34 UTC, following an Ethereum reorganization that removed a 10 ETH deposit already credited by THORChain. When a swap attempt failed to execute at the expected price, THORChain’s system initiated a refund. However, since the associated deposit was erased by the reorg, the vault processed an extra 10 ETH as a refund, while still returning the original deposit to the sender. This sequence produced a duplicate payout and automatically triggered a suspension in the protocol.

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