Woofun AI reports that decentralized privacy protocol hinkal confirmed a security breach where an attacker extracted approximately 797,000 USDC from its Ethereum contract. The stolen assets were swapped for roughly 454 ETH, with about 410 ETH sent to Tornado Cash and the remainder bridged to the Bitcoin network via THORChain.

hinkal stated that the incident is confined to Ethereum fund pools, though all contracts are paused for security verification. The protocol is working with external experts to trace funds and has committed to fully compensating affected users at a 1:1 ratio.