THORChain Halts Cross-Chain Swaps After Ethereum Reorganization as RUNE Drops 18%

Key takeaways THORChain suspends swaps across ten major blockchain networks Ethereum reorganization triggers unexpected ten ETH refund error RUNE tumbles as disruption delays Binance-linked fund movements THORChain suspended cryptocurrency swaps across ten blockchain networks after an Ethereum block reorganization triggered a refund error, sending its native RUNE token down approximately 18% as traders reacted to the unexpected disruption. The incident began on October 31, when THORChain processed a 10 ETH deposit that subsequently disappeared from Ethereum's accepted blockchain history. The protocol refunded the transaction despite its vault never receiving the funds.

In a November 1 statement, THORChain explained that its automated solvency checker detected the discrepancy and immediately halted Ethereum swaps. How a 10 ETH Refund Error Halted Ten Blockchain Networks At approximately 11:34 UTC on October 31, Ethereum experienced a one-block reorganization, replacing a recently accepted block with a competing version of its transaction history. A 10 ETH deposit intended for a THORChain vault had appeared in the discarded block.

Although the transaction was no longer part of Ethereum's accepted chain, THORChain had already credited the incoming funds. When the associated swap failed to meet its specified price limit, the protocol issued a refund. The problem was that the vault had never actually received the deposit.

THORChain's automated solvency checker identified the resulting 10 ETH shortfall and halted Ethereum swaps. Within roughly two minutes, node operators suspended outgoing Ethereum transaction signing. They subsequently paused additional networks as developers investigated the vulnerability.

The affected blockchains included Bitcoin, Ethereum, Solana, Tron, BNB Smart Chain, Cosmos, Bitcoin Cash, Dogecoin, Litecoin and Zcash. Swaps remained available on Avalanche, Base and XRP Ledger, alongside THORChain's native network. THORChain later confirmed that the recipient returned the extra 10 ETH, restoring the vault's balance.

However, the underlying problem remains significant because similar reorganizations could potentially trigger incorrect refunds on other supported networks. THORChain Shutdown Disrupts Binance Hacker Transfers The interruption occurred as investigators continued tracking cryptocurrency stolen during the October 29 Binance security breach. Blockchain analytics company Chainalysis said the shutdown temporarily delayed attempts to move stolen funds through THORChain's cross-chain swapping infrastructure.

The FBI previously attributed the Binance hack to North Korea's TraderTraitor group, which allegedly used decentralized exchanges and cross-chain services to redistribute stolen assets. THORChain allows cryptocurrency holders to exchange native assets across different blockchains without relying on a centralized exchange. That functionality can benefit legitimate users but can also complicate efforts to trace stolen cryptocurrency.

Coinpaper previously reported that 233. 46 million XRP was moved during the initial stages of the attack. The hackers subsequently redistributed assets across several networks, while investigators monitored movements involving Ethereum holdings.

Importantly, THORChain's suspension was triggered by its security mechanisms, not by a deliberate decision to block the Binance attackers. The incident nevertheless highlights how infrastructure failures can interrupt both legitimate transactions and illicit fund movements. RUNE Price Falls 18% as Developers Prepare Security Fix RUNE declined toward $0.

52 on November 2, losing approximately 18% over 24 hours as investors assessed the consequences of the trading suspension. The selloff followed a broader cryptocurrency market correction associated with the Binance security crisis. The technical issue creates additional uncertainty because THORChain's trading activity depends on reliable communication between multiple independent blockchains.

Developers are now working on safeguards intended to prevent deposits from discarded blocks being incorrectly recognized as final. Node operators will decide when individual networks can safely resume swaps. The suspension also follows wider concerns about cryptocurrency security, including the limitations of transaction authorization systems and the challenge of recovering stolen assets once they move across networks.