Thala DeFi Hack Recovers $25M After Bounty Negotiation

Key Points:

• Thala DeFi Hack Results in $25M Loss, Recovery Secured.
• Thala’s Swift Response to $25M DeFi Hack Ensures User Safety.

Thala DeFi Hack led to a $25M loss in its V1 liquidity pool. With law enforcement and a $300k bounty, stolen assets, including MOD and THL tokens, were fully recovered.

Thala DeFi Hack Results in $25M Loss and Asset Freezing

Thala was exploited for $25M on November 15, 2024, through a security vulnerability that targeted the V1 liquidity pool contracts. Large funds were withdrawn by the attackers, after which Thala immediately paused the affected contracts and froze the assets, including $9M in MOD tokens and $2.5M in THL tokens, to reduce further losses.

However, the breach was limited to the newest updates alone and didn’t affect existing modules like the CDP and LST. Thala reassured his users that their positions were safe in the wallet and would be made whole. Meanwhile, though the operations are temporarily paused, the team is doing an extensive code review and audit to make everything secure in the future.

Read more: FTX Sues SkyBridge Capital Founder To Recover $100 Million

Seal 911 Assists in Thala DeFi Hack Recovery

Following the $25 million breach in its V1 farming contracts, Thala promptly paused the contract and froze assets to minimize losses. Marooned to recent updates, the vulnerability didn’t affect the existing CDPs and LST modules. As serious as that set of circumstances was, user positions would be completely restored without further action by those with open positions.

It is now into an intensive review and re-audit of its codebase to firm up security parameters. The proactive collaboration between the project and law enforcement, and partners such as Seal 911, ensured a resolution came about quickly, including the recovery of funds through a $300k bounty agreement with the identified attacker.