- Thala has recovered millions of dollars in stolen user assets after being hacked.
- The protocol negotiated with the attacker.
- Thalaโs codebase is still under extensive review.
Thala announced today that it had successfully recovered millions of dollars in stolen crypto assets, reassuring its users of 100% indemnification.
Thala, developed by Thala Labs, is a decentralized finance (DeFi) platform built on the Move programming language. It enables users to borrow the Move Dollar and provide liquidity through a rebalancing Automated Market Maker (AMM). The Move Dollar is a decentralized, over-collateralized stablecoin on the Aptos network, backed by U.S. dollar-denominated assets held in separate accounts.
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The DeFi project deployed on Ethereumโs Layer 2 blockchain Movement in March, seven months before it was hacked.
Thalaโs Recovery from Hack
In an X post on Saturday, Thala confirmed that it had suffered a security breach on November 15 due to an isolated vulnerability in the latest update to v1 farming contracts. The exploit allowed the hacker to withdraw $25.5 million in liquidity pool tokens before the platform paused all relevant contracts and froze Thala token assets ($9 million in MOD and $2.5 million in THL).
According to the post, Thala sought the help of law enforcement, Seal 911, Ogle, and others to identify the attacker and negotiate a $300,000 bounty for the full recovery of stolen user assets.
โTo note, affected users require no further action, and positions will be made 100% whole. However, all relevant contracts and the Thala frontend will remain paused until deemed to be fully secure. Existing positions across CDP and LST modules are unaffected,โ the post read.
Thala clarified that it would issue further updates on the development after reviewing its protocolโs codebase and re-auditing all affected packages.
Stay updated on how much the crypto industry lost to hacks and scams in October:
Hereโs How Much Crypto Lost to Hacks and Scams In October
Read why WazirX users want to sue the hacked exchange:
WazirX Hack Victims Plan Class-Action Lawsuit Against the Exchange
