ThorChain Wallet Hack Explained: JP Thor’s Identity or Real Breach?

Crypto community is abuzz with stunning news that John-Paul Thorbjornsen (JP Thor), co-founder of THORChain, lost more than $1.2 million as a result of a wallet hack. Some are labeling it a hack, and others are calling it identity fraud. Let's spell out what precisely occurred behind this so-called Security Breach.

What Really Occurred in the Popular Wallet Hack

Per on-chain data provided by Lookonchain , a wallet that belonged to @jpthor, the THORChain and Vultisig co-founder, was hacked. The attackers are alleged to have scammed the owner in a phishing conference call and stolen crypto worth approximately $1.2 million.

Source: X

Taking advantage of the uncertainty, experienced crypto scam investigator ZachXBT testified that the wallet that was hacked belonged to JP Thor. He explained that it was a private account, not connected to any project funds. Interestingly, ZachXBT also remarked that JP and his products have previously benefited indirectly from helping North Korean groups launder stolen crypto, calling it “poetic” that they targeted him this time.

However, blockchain security firm PeckShield reported this hack news involving just a personal user, without directly naming JP Thor.

Source: X

This created a swirl of rumors linking the event with the project co-founder, especially as both the username (@jpthor) and the co-founder’s identity matched closely.

Official Clarification and Impact on RUNE Price

To clear the air, the official THORChain X account posted that the exploited account has no relation to the protocol or its team. They stressed that this was not a protocol-level exploit and that the project remains secure.

Source: X

The confusion mainly arose because of the co-founder (JP Thor) and the user whose account was exploited share the same handle. But the protocol confirmed it was not an attack on itself, only a personal compromise.

In spite of all the commotion, RUNE price too did not see any notable drop. Its native cryptocurrency RUNE traded at $1.28 at the time of reporting, having seen an intraday increase of 0.4% with a market cap of $450.46M and $44.73M volume in the last 24 hours. RUNE has even appreciated over 6% in the past 7 days, indicating investor sentiment has not changed any at all despite ThorChain Security Breach rumors.

Source: CoinMarketCap

Is This A Pre-Meditated Bid to Discredit ThorChain?

Many in the community think that this could be a false rumor campaign aimed at discrediting THORChain . The project has grown immensely, with its current status as one of the top 10 in the world by revenue per holder—a rare feat indicative of real user demand.

And then, on September 18, there is a planned major upgrade, which can push its ecosystem to newer heights. Some believe that news of the crypto hack surfaced just to give notice of this update.

Conclusion

Currently, there is no sign of protocol level violation displayed, yet a personal wallet compromise owing to the John-Paul Thorbjornsen (JP Thor) identity. Investors should stay calm, follow THORChain news from official channels, and verify facts before making any moves. This incident appears more like name confusion than a real threat to the project.

Disclaimer: This is for educational purposes only. Always do your own research before any crypto investment.