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FIGR_HELOC $1.07 Ethereum · News brief
THORChain pauses swaps on ten blockchains after Ethereum reorg overpays 10 ETH
An Ethereum block reorganization on Oct. 31 caused THORChain to refund 10 ETH that never arrived, prompting an emergency halt across most supported chains.
Key takeaways
- Immediate response. THORChain's solvency system automatically stopped ETH swaps within minutes of detecting the discrepancy.
- Broader impact. The halt affected Bitcoin, Solana, Tron, BNB Smart Chain, Cosmos, Bitcoin Cash, Dogecoin, Litecoin and Zcash, leaving only AVAX, Base, RUNE and XRPL active.
What happened
At 11:34 UTC on Oct. 31, Ethereum experienced a one‑block reorganization that removed a 10 ETH deposit from its canonical chain. THORChain had already recorded the deposit and credited a vault, so when the swap failed to meet the sender's price limit, the protocol issued a refund. Because the original deposit no longer existed on Ethereum, the vault sent out 10 ETH it had never received, creating a shortfall.
The protocol's automatic solvency checker flagged the missing funds and instantly halted Ethereum swaps. Within roughly two minutes, node operators stopped outbound ETH transaction signing and subsequently voted to pause trading on nine additional chains as a precaution. The user later returned the 10 ETH, restoring the vault's balance, and the network began assessing when to reactivate each chain.
First $2.7KLatest $2.3K-14.7% over the period
Points are daily observations, not closing prices.
Why it matters
The incident highlights the vulnerability of cross‑chain liquidity protocols to blockchain reorganizations, where temporary inconsistencies can lead to unintended fund movements. By halting multiple chains, THORChain prevented further potential losses and limited exposure for liquidity providers, while also temporarily disrupting transfers linked to the high‑profile Binance hack investigation.
Background
THORChain is a decentralized cross‑chain swapping platform that relies on vaults to hold assets from multiple blockchains. Its design includes an automatic solvency checker that monitors vault balances and can trigger emergency halts when discrepancies arise. The protocol previously suffered a vault breach in May 2026, prompting security upgrades and an 11‑step restart plan.
What to watch
Future Ethereum or other blockchain reorganizations could repeat this scenario if a vault credits a transaction that is later removed. Developers are working on fixes to ensure refunds are not processed for dropped blocks, and node operators will continue to monitor chain health before re‑enabling trading.
Questions readers ask
Will THORChain resume full trading on all chains soon?
Node operators will reactivate each chain only after confirming that the solvency issue is fully resolved and the new safeguards are in place.
