THORChain Defends Patched GG20 Signing Framework After $10.7 Million Exploit

THORChain is pursuing recovery from the May 15 exploit that drained about $10.7 million from a single vault while defending its decision to continue operating with a patched GG20 signing framework, according to its post-mortem report. Under ADR-028, the protocol said no new RUNE will be minted or sold; losses would first be absorbed through protocol-owned liquidity, reducing it to zero, with any remaining shortfall spread across synth holders and future system income redirected over time to replenish liquidity. THORChain said the attacker exploited a flaw in GG20 after reportedly joining as a node operator two days before the breach, while only one of five vaults was affected. The network said trading halts were triggered within minutes, a full lockdown followed in about two hours, GG20 has since been patched and upgraded, unaffected nodes in the compromised vault would not be slashed, and the proposal includes a 10% bounty offer for the attacker to return funds. The decision to retain patched GG20 has drawn criticism from crypto security researchers and investors, while Chainalysis published on-chain evidence linking the attacker to wallets funded through Monero, Hyperliquid, Arbitrum, and Ethereum.

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