THORChain says recovery is in final stages as KeyVerify checks keyshares before vault churn

THORChain has announced that its cross-chain liquidity network is now in the final stages of recovery following the May 2026 exploit that drained roughly $10.7 million from the protocol and led to a network halt and staged restart plan. In its latest incident update, the team said it is currently using a new KeyVerify protocol to validate the integrity of every node’s keyshare in its threshold signature scheme (TSS), a prerequisite step to ensure that all vaults are secure before any further movement of user and protocol funds. This verification is intended to confirm that no node or vault was left in a compromised state after the attack and subsequent fixes to the TSS implementation. If KeyVerify completes successfully, the next step will be a vault churn, during which all funds will be transferred from existing vaults to newly created, verified vaults as part of the 11‑step recovery and restart process approved under governance proposal ADR‑028. THORChain has indicated that churn duration is the main uncertainty at this stage and could range from several hours to a few days. Once churn is finished, the team expects to rapidly re-enable secured and trade assets, reopen liquidity provider operations, and ultimately restore full trading functionality on the network, marking a key milestone in both technical recovery and in rebuilding trust after the exploit.

✨ AI-generated background, compiled from web sources — not editorial content.

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