Chainflip to reset TRON USDT provider balances to zero following $736,000 exploit

Chainflip will set affected liquidity providers’ active TRON USDT balances to zero under a restart plan responding to the 736,442.17 USDT exploit it disclosed on Sept. 12.The cross-chain swap protocol will first record each provider’s pre-migration balance separately on-chain, preserving the amount Chainflip says it owes even though the active account will read zero. Repayment remains pending.By Sept. 16, Chainflip said swaps and quoting had resumed across the rest of the network while TRON remained excluded. The service restart leaves providers on the affected route waiting for both the accounting migration and a recovery process.Chainflip said the attacker removed the USDT from its TRON vault between 01:44 and 03:10 UTC on Sept. 12 by causing six liquidity-provider withdrawals to be paid twice.The attack exploited how the protocol read instructions attached to TRON transfers. Chainflip said the attacker submitted a transaction its validators had already signed and added a malformed memo. Software monitoring the transfer interpreted the memo as a failed swap and issued a refund on top of the ordinary withdrawal.The protocol said the TRON vault now holds far less USDT than provider...