DeFi protocol Thala has collaborated with law enforcement and security experts Olga and others to restore around $25million is stolen user assets.
Thala, a decentralized finance (DeFi) protocol, recently experienced a security breach resulting in the loss of $25.5 million in liquidity pool tokens. The exploit targeted an isolated vulnerability in the latest update to its v1 farming contracts. In response, Thala promptly paused all relevant contracts and froze assets, including $9 million in Move Dollar (MOD) tokens and $2.5 million in THL, the project’s native asset.
To address the breach, Thala collaborated with law enforcement and blockchain security experts, including Seal 911 and Ogle. This collaboration led to the identification of the exploiter and a negotiation resulting in a $300,000 bounty for the return of the stolen assets. Thala told users that no further action is required on their part, and all positions will be fully restored.
Following the incident, Thala says it has initiated an extensive review and re-audit of all affected and related packages to enhance security and prevent future vulnerabilities. The protocol’s swift response and successful recovery of funds underscore its commitment to user security and the integrity of its platform. Despite the apparent successful resolution of the hack, the THL price has fallen steeply and at $0.53 is down 42% from its November high of $0.94.
Thela Price November 25th. Source: Brave New Coin THL Market Cap data
The THL token functions as the governance token for Thala, enabling holders to participate in key decision-making processes within the ecosystem.
