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THORChain’s governance body has passed Proposal 6 as part of its restructuring efforts to resolve a nearly $200 million debt crisis. The approved plan involves converting defaulted debt into TCY (Thorchain Yield) equity tokens, eliminating the need for a private raise, and leveraging existing treasury funds to facilitate recovery. Under this framework , 200 million TCY tokens will be minted and distributed to affected users at a rate of one token per dollar of defaulted debt. These tokens will receive 10% of protocol fees indefinitely, providing long-term incentives for liquidity providers and aligning interests across the ecosystem. A shallow RUNE/TCY pool will be established at $0.10 per TCY, with $5 million in treasury funds allocated for strategic buybacks over ten weeks in a bid to ensure a more stable price discovery process. The proposal also introduces Liquidity Nodes to ramp up capital efficiency and offset forfeited fees, thereby strengthening governance participation for liquidity providers. By writing off debt through an equity conversion, the protocol remains solvent without minting additional RUNE, while affected users gain a potential path to full recovery. The latest development comes after the decentralized cross-chain liquidity protocol temporarily suspended its THORFi services on January 23rd in response to financial instability and insolvency rumors. A 90-day restructuring plan was put in place to address challenges arising from its Savers and Lending programs, which have accumulated excessive debt. Trading activities, including swaps, remained unaffected, but lending services were on hold as validator nodes oversaw the restructuring process. “The Jan 23 pause set the conditions for community members to decide on a restructuring plan to ensure the network’s continued operation while compensating Lending and Savers users. The community stepped up, proposing 8 independent plans, which were reviewed and voted on by Node Operators.” Its native token, RUNE, has been on a steady decline since the first week of December. It took a deep plunge following the suspension of THORFi. Despite minor hints of recovery, RUNE continued its downtrend, shedding almost 80% over the past month alone. It was currently trading at $1.21. The post Governance Votes in Favor of Proposal 6 to Resolve THORChain’s Liquidity Crisis appeared first on CryptoPotato .
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Canadian Man Charged for Exploiting DeFi Vulnerabilities in $65M Hacking Scheme
The man, still at large, faces five charges, including wire fraud, computer damage, extortion, and money laundering. Crypto Potato
U.S. Prosecutors Charge Canadian Man With $65M Hacks of Indexed Finance, KyberSwap
U.S. prosecutors have charged a 22-year-old Canadian man with stealing a combined $65 million in crypto through two separate decentralized finance (DeFi) hacks — the 2021 Indexed Finance exploit and the 2023 KyberSwap hack . In a newly-unsealed indictment filed in the Eastern District of New York (EDNY), prosecutors say Andean “Andy” Medjedovic was the mastermind behind both exploits. Though Medjedovic’s alleged role in the KyberSwap exploit was previously unknown, he has publicly admitted to being the Indexed Finance attacker, wiping $16 million from the DeFi platform when he was still a teenager. Read more: After Stealing $16M, This Teen Hacker Seems Intent on Testing ‘Code is Law’ in the Courts Medjedovic did little to hide his identity as the Indexed Finance hacker because he professed to believe he wasn’t actually doing anything illegal. Another DeFi hacker, Avraham “Avi” Eisenberg, took a similar “code is law” position after his 2022 Mango Markets exploit, claiming that siphoning $110 million from the decentralized exchange was fair game. A New York jury disagreed , finding Eisenberg guilty of fraud and market manipulation . He will be sentenced later this year, and faces up to 20 years in prison. Medjedovic has been on the run since December 2021, when a Canadian court issued a warrant for his arrest. In 2023, he told a DeFi Llama reporter that it was “exhausting” living as a fugitive, saying that he had been bouncing around through Europe, South America and an unnamed island nation while on the lam. A spokesperson for the Eastern District of New York (EDNY) told CoinDesk that Medjedovic remains “at large” and is not believed to be in the U.S. Eight months after telling the same reporter that he was now a whitehat hacker, prosecutors say Medjedovic stole about $50 million from KyberSwap . According to the indictment, Medjedovic planned the KyberSwap hack for months before acting, writing to himself “Find time to Strike!” and creating a “POST-EXPLOITATION” plan for himself. In one file, Medjedovic allegedly mused on his past mistakes, writing “Going On the run / Yes / Chance of getting caught Medjedovic has been charged with one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering conspiracy and one count of money laundering. He faces a maximum penalty of 90 years in prison. Crypto Potato
