Summary

  • THORChain ZEC swaps halted after node slash bug
  • v3.21 fix expected October 23 2026
  • Fearless Wallet leaked keys since 2025

THORChain halted native ZEC swaps in mid-October 2026. A bug in outbound matching slashed roughly 140 RUNE from 18 nodes. No user funds were lost.

The protocol keeps ZEC trading paused until the v3.21 upgrade.

"THORChain halted native ZEC swaps after outbound matching bug"

, The Defiant (Source)

Context

THORChain enables decentralized swaps across chains without wrapped tokens. This requires precise coordination between vaults on different networks. A bug in the outbound matching process for ZEC triggered the slash that hit node operators.

The protocol responded by suspending native ZEC activity until the root cause is addressed.

Separately, the Fearless Wallet browser extension leaked private keys on Polkadot starting February 2025. Reports show 17,286 DOT stolen before containment in October 2026. These events highlight persistent vulnerabilities in protocol logic and wallet infrastructure.

Details

THORChain confirmed the ZEC halt stems from a matching bug that incorrectly processed outbound transactions. The v3.21 upgrade is scheduled around October 23 2026. It should resolve the flaw.

Node operators can recover losses through the upgrade process.

The Fearless Wallet leak affected users who relied on the browser extension for Polkadot transactions. The compromise exposed private keys over an extended period. Attackers drained funds directly from affected wallets.

Polkadot publicly noted the breach and urged users to review their security settings.

These incidents occur against a backdrop of broader DeFi security concerns. Cross-chain protocols like THORChain must manage vault states across independent blockchains. Wallet providers handle sensitive key material that cannot be recovered once exposed.

Both cases underscore the need for rigorous testing before features involving native assets such as ZEC are re-enabled.

Outlook

THORChain plans to reactivate ZEC swaps once v3.21 is live. Users of Fearless Wallet should monitor their security practices and watch for protocol updates.