- Thala Labs recovered $25 million of stolen funds just six hours after a DeFi security breach.
- Thala Labs froze $11.5 million in assets after the hack, including $9 million in Move Dollars.
- The hacker returned stolen funds after being tracked via on-chain links and received a $300,000 bounty.
Thala Labs, a decentralized finance (DeFi) protocol was hacked on November 15 2024. Thala Labs is built on the Aptos blockchain platform.
Consequently, Hackers targeted a critical weakness in Thala’s v1 mining contract and siphoned off $25.5 million worth of liquidity pool tokens. The breach initially caused concerns about the safety of the funds and the platform’s future.
Swift Action Leads to Recovery
Thala Labs has acted quickly after the breach. Within six hours, the protocol, assisted by law enforcement and recovery organizations, managed to recover $25 million of the stolen funds.
Thala froze approximately $11.5 million in assets and paused all relevant contracts to secure the platform. The frozen assets included $9 million in Move Dollars (MOD) and $2.5 million in Thala’s native governance token, THL
In a statement, Thala Labs reassured its users, stating that all affected positions would be restored to their full value. In addition, the protocol emphasized that users did not need to take any action to recover their funds. The team’s quick response helped to prevent further losses and showed a strong commitment to user security.
Hackers Tracked and Bounty Paid
The crypto community, along with the recovery firms Seal 911 and Ogle, helped track down the hacker. Recovery teams identified the hacker through obvious on-chain links. Remarkably, the hacker voluntarily contacted the recovery teams and agreed to return the stolen funds. In exchange for the return of the assets, Thala Labs offered the hacker a $300,000 bounty. This quick resolution marked a rare but positive event in the crypto space.
Enhanced Security Measures and Ongoing Review
Despite the recovery, Thala Labs has paused its frontend and farming operations. Moreover, the team is conducting a full review and re-audit of the system’s code to ensure future security. This breach highlights the ongoing security risks faced by decentralized finance protocols. Thala Labs remains focused on strengthening its security and rebuilding user trust. Thala’s swift actions and user-focused approach reflect its commitment to securing funds and improving its platform’s integrity.
The post DeFi Security Win: Thala Labs Restores Stolen Funds Within Hours of Hack appeared first on Crypto News Land.