THORChain: The Hack That Gives You… More Hacks?

THORChain, a crosschain swap protocol, is doing a little happy dance 💃 (or maybe it’s a nervous jig 🕺) following the $1.4 billion exploit of cryptocurrency exchange Bybit.

On Feb. 26, the protocol processed $859.61 million in swaps, marking its highest-ever daily volume, according to data from THORChain Explorer. The momentum continued on Feb. 27, adding $210 million (and counting), pushing total swap volume past $1 billion in under 48 hours. Talk about a boom, eh? 🤯

THORChain enables direct asset swaps across different blockchains, such as exchanging Ether (ETH) for Bitcoin (BTC). Handy if you’re suddenly in possession of a whole lot of ETH you need to, uh, convert. 👀

Swapping stolen funds for Bitcoin has been a common tactic of the North Korean state-sponsored hacking group Lazarus. Blockchain analysts have previously reported that Lazarus often converts illicitly obtained digital assets into BTC to obscure their trail. Like trying to hide a neon sign in a disco. Not very stealthy, laddy. 🕶️

THORChain’s Chain of Criticism

The surge comes amid ongoing controversy for THORChain. In January, it paused Bitcoin and Ether lending after accumulating about $200 million in liabilities, triggering a debt restructuring plan. While lending was frozen, swaps have remained active. Because, you know, why not add a bit of chaotic fun to the mix? 🤡

THORChain core dev Nine Realms engineer “Pluto” came to the defense while advocating for responsible measures to address illicit activity. Pluto acknowledged that illicit funds have flowed through THORChain but added that the team has taken steps to help wallet and integration partners implement screening services. Like putting up a “No Looting” sign in a dragon’s lair. Best of luck with that. 🐲

THORChain’s (RUNE) cryptocurrency has climbed 36.6% in the past week, CoinGecko data shows. Don’t worry, be happy! 😅

Bybit Hacks: Good Actors and Bad Actors

Bybit has launched a website to track the laundering of its stolen funds while offering a bounty to exchanges and entities that assist in freezing them. On Feb. 27, the site listed seven good actors and one bad actor, eXch. A real game of good cop, bad cop there. 👮‍♀️👮‍♂️

2025-02-27 13:19

THORChain: The Hack That Gives You… More Hacks?

THORChain’s Chain of Criticism

Bybit Hacks: Good Actors and Bad Actors

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