THORChain's $5.5M revenue amid $5.4B volume raises concerns
The recent hack of Bybit, a centralised cryptocurrency exchange, has led to a significant surge in activity on THORChain (CRYPTO:RUNE), a decentralised cross-chain asset swap protocol.
The hackers, suspected to be the North Korean Lazarus Group, used THORChain to launder a substantial portion of the stolen $1.4 billion in cryptocurrencies.
As a result, THORChain processed over $5.4 billion in swap volume, generating approximately $5.5 million in revenue from these transactions.
On one day alone, the protocol's swap volume exceeded $1 billion, earning it over $554,000 in income.
Critics have raised concerns about THORChain's role in facilitating these illicit transactions.
"THORChain just helped North Korea launder $605 million. No KYC, no off switch, no resistance," crypto commentator Yogi noted.
"Other protocols have blocked dirty wallets without killing decentralisation. THORChain had options—Elliptic, transaction monitoring—but ignored them," he further emphasised.
The incident led to a developer quitting THORChain after a vote to block North Korean hacker-linked funds was reversed, highlighting internal conflicts within the team.
Blockchain analytics firms have flagged numerous wallet addresses linked to the hack, with ongoing investigations expected to reveal more.
Bybit CEO Ben Zhou confirmed that 20% of the stolen funds have gone dark, while 77% remain traceable.
The event has reignited discussions about the balance between maintaining decentralisation and ensuring regulatory compliance in the cryptocurrency sector.
Platforms like THORChain face scrutiny for their potential to facilitate illicit activities while maintaining their decentralised nature.
At the time of reporting, the THORChain (RUNE) price was $1.21.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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