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On November 15, 2024, the Thala protocol fell victim to a hack that resulted in over $25 million in stolen assets. However, through swift action and negotiations with the hacker, the team managed to recover nearly all the stolen funds.

Details of the Hack

According to the developers, the breach exploited a vulnerability in the Thala v1 smart contract. The attacker drained liquidity pools of various assets, including Move Dollar (MOD) and governance tokens, resulting in a total loss exceeding $25 million.

Immediately after the attack, law enforcement and recovery specialists from SEAL 911 and Ogle Security Group were involved, enabling Thala’s team to establish contact with the hacker and seek a resolution.

Negotiations and Recovery

Following negotiations, the developers reached an agreement with the hacker, who returned the stolen funds in exchange for a $300,000 bounty. The hacker cooperated by providing details of the exploit, aiding in the recovery process.

Current Security Measures

Thala’s team is actively reviewing the vulnerability in the smart contract that led to the incident. The protocol’s security is now under close scrutiny to prevent similar issues in the future.

This case highlights the importance of rapid response and communication in mitigating losses and restoring trust in the DeFi ecosystem.