THORChain reportedly generated $5.5M in transaction fees from the surge in activity linked to the laundering of Bybit’s stolen funds.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
The recent hack on cryptocurrency exchange Bybit has triggered a massive surge in trading activity on THORChain, a decentralized cross-chain liquidity protocol. Data from DeFiLlama shows that between February 24 and March 2, THORChain processed over $4.6 billion in trading volume, marking a record high as traders scrambled to move and secure their assets.
On February 26, THORChain recorded its highest daily trading volume, processing $859.61 million in swaps. The following day, the platform handled another $210 million, bringing its two-day volume to over $1 billion.
The spike in THORChain’s activity coincided with the Bybit hack, which industry analysts believe was orchestrated by North Korea’s Lazarus Group. The infamous hacking syndicate allegedly used THORChain and other decentralized platforms to launder their stolen funds.
Bybit CEO Ben Zhou confirmed that the attackers had already laundered a significant portion of the loot. Unlike other hackers who let stolen funds sit in dormant wallets, Lazarus wasted no time in dispersing the $1.4 billion stolen from the exchange.
According to Zhou, $280 million of the stolen funds has been laundered and is no longer traceable, while $1.07 billion remains trackable, allowing investigators to continue their efforts to recover the assets.
Blockchain data reveals that the hackers converted 417,348 ETH ETH $1 784 24h volatility: 6.5% Market cap: $215.23 B Vol. 24h: $25.19 B (approximately $1 billion) into Bitcoin BTC $81 907 24h volatility: 5.2% Market cap: $1.63 T Vol. 24h: $52.82 B and dispersed it across 6,954 crypto wallets, each holding an average of 1.71 BTC. This fragmentation significantly complicates tracking and recovery efforts.
So far, industry collaborations have led to the freezing of $42 million, roughly 3% of the stolen funds.
Blockchain analytics firm EmberCN reported that the hackers completed their laundering process within 10 days, leveraging THORChain as their primary tool for moving funds. The company estimated that THORChain processed up to $5.9 billion in transaction volume, higher than DeFiLlama’s reported $4.6 billion.
Additionally, the company said the cross-chain platform generated around $5.5 million in transaction fees.
Following the hack, Bybit CEO Ben Zhou reached out to THORChain’s team, requesting assistance in freezing the stolen funds in case the hackers attempted to launder them through the platform.
However, THORChain declined the request, effectively giving the attackers free rein to move their illicit gains.
The decision has sparked debate within the crypto community about decentralization versus security, as platforms like THORChain operate without centralized control, making asset freezing nearly impossible. While this ensures censorship resistance, it also raises concerns about their use in illicit financial activities.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
