DailyCoin’s white hat vs. gray hat

• A hacker used THORChain for the second time in a week.
• DEX lost $8 million in digital assets, presumably from a white hat hacker.
• The attack focused on the router, which has been exploited in the past.

Innovation has led to a paradigm shift in the way technology is used daily. However, the development of disruptive technology requires a long process of perfecting the code, which will cause occasional bad actors to enter the field. Although the goal of hackers is to cause financial and technical damage for their benefit, other “white hat” hackers use services to seek greater benefits for the company. Nevertheless, any violation of security or code will reduce the trust of the network, because user funds are considered at risk.

THORChain cannot rest.

THORChain, the hyped DEX, has encountered another security breach. After that, hackers deceived the code by imitating fake deposits and subtracted USD 8 million worth of Ethereum from the agreement. In a Twitter post, the protocol announced a “complex” attack centered on the ETH router.

The agreement further emphasizes that the attack was carried out by a white hat hacker, who claimed that if “they extended their hands” they would receive a 10% bounty. In a discordant chat, the hacker claimed that the protocol had minimized the damage, but decided to continue the hacking attack to show that it “should not rush to control the 9-digit code”.

As reported by BeInCrypto, hackers claim that Ethereum is not the only asset that can be competed for. As the previous hacker demonstrated, the hacker also withdrew AAVE and YFI. Likewise, the latest hack may have withdrawn BTC, BNB, ETH or other BEP-20 tokens. Due to “multiple key issues” found in the code, THORChain stated that “ETH will be suspended until it can conduct peer review with audit partners as a priority.”

on the other hand

• The hacker managed to trick ETH Bifrost into reading the fake ETH deposit.
• Compared with the behavior of centralized organizations in this situation, THORChain uses all the information disclosed by hackers as a means to improve its image.
• The price of THORChain has fallen by 76% from its all-time high of $20.90.

Determine the way out

Although the loss of funds is not their main concern, such adverse events are damaging the community’s perception of the agreement. As THORChain tweeted after each hack, the tokens will be repaid in full because “the Ministry of Finance has sufficient funds to pay for it”. In addition, as the agreement emphasizes identification issues, ERC-20’s liquidity pool will be “subsidized.”

THORChain failed to send network updates after being the victim of three hacking attacks in just one month. Although the agreement states that its code complexity is its “Achilles’ heel,” the importance of delivery is not something they want to ignore. Erik Voorhees, CEO of ShapeShift, believes that the agreement needs to modify their schedule and take a slower approach to avoid damaging their blockchain image.

Although the company has controlled financial and brand losses to a certain extent, its current status and development “need to slow down.” The agreement has recognized the need to “rethink developer procedures and peer review” to avoid such problems.

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