North Korea allegedly laundered $1.2 billion through THORChain in crypto heist
North Korea allegedly laundered $1.2 billion through THORChain
In a stunning display of cybercrime, the February hack of Dubai-based crypto exchange Bybit has been labeled one of the largest in history, with North Korea’s Lazarus group stealing approximately $1.4 billion in Ethereum.
The breach occurred after Bybit’s founder was duped into visiting a compromised website, granting hackers access to the exchange’s primary Ethereum wallets. Following the theft, North Korean launderers immediately began dispersing the stolen funds across a labyrinth of new crypto wallets, employing sophisticated techniques including multiple intermediary wallets and cross-chain bridges to obfuscate the illicit origins of the funds, reports CoinDesk.
Chainalysis’ Andrew Fierman noted that the Democratic People’s Republic of Korea (DPRK) leverages advanced technology to launder cryptocurrency, moving stolen assets across platforms such as Bitcoin, Ethereum, Tron, and Solana. In this complex laundering process, THORChain played a pivotal role by facilitating token swaps across blockchains—a function that centralized services cannot easily perform without risking asset seizure.
Record swaps and decentralization debate
In the immediate aftermath of the hack, THORChain witnessed a historic surge in trading activity. Its daily swap volume spiked to over $529 million on the day following the breach, eventually surpassing a monthly volume of over $1 billion. This increase generated millions of dollars in fees for THORChain validators and liquidity providers, with Chainalysis estimating at least $12 million earned in fees connected to the heist.
However, the incident has also reignited debates about THORChain’s decentralization. While proponents argue that its network of over 100 validators ensures distributed control, critics highlight past instances of centralized intervention—such as a brief halt in Ethereum swaps and the controversial use of administrative keyholders like “Leena.” As the crypto community grapples with these governance challenges, the unfolding story of the Bybit hack and its aftermath will continue to shape discussions on security and decentralization in digital finance.
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