Although Thala has recovered the entire amount of funds lost, the Thala token price has still dropped by around 35% since the incident occurred last week.
The Thala Labs decentralized finance (DeFi) project has recovered $25.5 million worth of tokens from the stolen liquidity pools after the hacker was quickly tracked down by law enforcement and cryptocurrency investigators.
In a post on November 16, Thala revealed that it had suffered a "security incident" on November 15 due to a "unique vulnerability related to v1 farming contracts," allowing the hacker to withdraw the liquidity tokens.
Thala said they immediately paused all related contracts and froze $11.5 million in Thala-related assets, while also quickly identifying the hacker.
"With the support of law enforcement, Seal 911, Ogle, and others, we were able to quickly identify the exploiter," Thala said.
The hacker returned the funds 6 hours after the incident, according to cryptocurrency investigator Ogle. Thala said they offered a $300,000 bounty in exchange for the full return of user assets. Details about the attacker's identity were not disclosed.
Thala emphasized that "affected users do not need to take any further action, and all positions will be restored 100%."
Thala's user interface is now back online. However, farming activities remain paused, and users cannot stake or unstake until Thala conducts a "thorough review" and audits the entire protocol's codebase.
The attack was related to Thala's integration with Move, a modular blockchain network built by Movement Labs, according to Thala CEO Adam Cader in a post on X (formerly Twitter) on November 16.
"It's inevitable that some security issues may arise in the future on Move, but the reason we're building here is for those issues to occur with decreasing frequency and severity, and eventually approach 0 as the supporting tooling becomes more robust."
Thala is one of the leading DeFi platforms on the Aptos layer-1 blockchain. The THL token has dropped around 35%, down to $0.51, since the incident.
Approximately $2.5 million worth of THL tokens were stolen in the exploit, along with $9 million from Thala's Move Dollar (MOD) stablecoin.
Meanwhile, Thala's total value locked (TVL) has decreased from $240 million on November 15 to $195.6 million at the time of writing, according to data from DeFiLlama.
Nearly $130 million was stolen from victims in October, mostly from exploits, according to a report by blockchain security firm CertiK.
The largest incident in October was related to the Radiant Capital lending protocol, which lost around $54 million.
Approximately $460 million was stolen by hackers across 28 incidents in the previous three months (Q3 2024), according to cybersecurity firm Hacken.
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The article Thala recovers $25.5 million in crypto after v1 farming vulnerability first appeared on CoinMoi.
