THORChain has halted trading and signing activities after an exploit compromised one of its Asgard vaults, resulting in a loss of approximately $10.8 million. The network detected unusual activity and suspended operations to prevent further transactions. Initial assessments indicate that user funds were not directly affected, with losses limited to protocol-owned assets. Security experts, including Ledger CTO Charles Guillemet, suggest the breach may involve vulnerabilities in the threshold signature scheme (TSS) infrastructure, specifically related to multi-party computation (MPC) wallet systems. Guillemet highlighted potential weaknesses in the GG20 protocol, which could allow a single compromised co-signer to reconstruct signing keys. The investigation is ongoing, with THORChain promising further updates as they work to address the security breach.