The incident highlights the vulnerability of cross-chain protocols to blockchain reorgs, impacting their reliability and complicating illicit finance tracking.
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An unexpected reorganisation of Ethereum led THORChain to issue twice the reimbursement of a 10 ETH deposit and activate its emergency brake. The detention froze exchanges in 12 of the 13 compatible chains and, according to Chainalysis, also slowed movements of stolen Binance funds linked to actors associated with North Korea.