#THORChainRecoveryEntersFinalPhase #THORChainRecoveryEntersFinalPhase

THORChain has entered the final stage of its recovery process following the roughly $10.7 million exploit that forced the protocol to halt trading and signing operations in May 2026. The network is currently validating node keyshares through a new KeyVerify protocol before moving funds into fresh vaults. If validation succeeds, THORChain will begin a network "churn" that migrates assets to new vaults and gradually restores full services.

Key points

✅ KeyVerify checks are underway to confirm the integrity of every node's keyshares.

✅ Compromised vaults have been quarantined as part of the recovery plan.

✅ Funds are expected to be moved to newly created vaults once verification is complete.

✅ The ADR028 recovery framework covers losses primarily through Protocol-Owned Liquidity (POL), avoiding new RUNE token issuance and dilution for holders.

Why it matters for RUNE

A successful completion of the recovery process would:

Restore confidence in THORChain's security and infrastructure.

Allow cross-chain swap functionality to return fully.

Potentially improve sentiment around the native token, RUNE.

Demonstrate resilience after one of the largest security incidents the protocol has faced in 2026.

Risk to watch

Recovery is not complete yet. The critical milestones remain successful keyshare verification, vault migration, and stable restoration of services. Any issues during these steps could delay the restart process.

At the moment, the market appears to be treating the update as a positive sign that THORChain is moving closer to normal operations, but execution of the final recovery steps remains the key factor investors are watching.