THORChain’s TRON Operations Disrupted by USDT Vault Blocklist
- On Oct. 9, THORChain’s TRON operations were interrupted due to a blocklist affecting vaults holding approximately $1.45 million in USDT.
- The blocklist impacted four of the six TRON vaults, which contained about 93% of the protocol’s TRON USDT.
- Trading resumed at approximately 15:58 UTC after the addresses were unfrozen at around 15:35 UTC.
- The incident caused a payout queue of roughly $363,000 during the disruption period.
- Tether’s freezing policy aligns with OFAC sanctions and can affect secondary-market wallets, independent of THORChain’s validator controls.
The interruption on Oct.9 highlights vulnerabilities in THORChain’s handling of stablecoins like USDT, as it faced scrutiny following a surge in trading linked to illicit activities.
Following the unfreezing of vaults holding $1.45 million in USDT, swaps resumed within an hour, demonstrating the operational challenges faced by decentralized protocols amidst regulatory pressures.(Source)
