THORChain Dev Resigns After Failed Vote on Stolen Crypto

Crypto News

THORChain Dev Walks Away After Attempt to Stop Illicit Funds Fails

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 28, 2025

Key Takeaways

THORChain developer quit after a vote to block North Korean-linked transactions was overturned within minutes;
Validators clashed over stopping stolen Bybit funds, with $605 million in ETH allegedly moved through THORChain;
THORChain’s founder denied money laundering claims, stating stolen ETH is swapped for BTC before reaching centralized exchanges.

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THORChain Dev Walks Away After Attempt to Stop Illicit Funds Fails

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A THORChain RUNE $0.6826 developer has stepped away from the project after an attempt to block transactions linked to North Korean hackers was reversed.

The decision followed a controversial vote involving THORChain validators. One validator, "TCB", said they had voted—along with two others—to stop Ethereum ETH $3,133.40 trading on the network to prevent North Korean hackers from using it.

However, the decision was quickly reversed. THORSwap developer Oleg Petrov explained that three validator votes were needed to pause a chain, but four were required to undo it, which happened within minutes.

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The developer of the cross-chain swap protocol, known as "Pluto", announced their exit in a February 27 post on X, saying, “Effectively immediately, I will no longer be contributing to THORChain”.

The Lazarus Group, a cybercrime organization tied to North Korea, has allegedly been using THORChain to move some of the $1.5 billion stolen from the exchange Bybit $2.61B on February 21. According to blockchain tracker Lookonchain, around $605 million in ETH has passed through the network.

THORChain’s founder, John-Paul Thorbjornsen, responded to the criticism, saying he had not been contacted by any authorities regarding the issue.

He also insisted that the platform itself does not facilitate money laundering, explaining that once the ETH is swapped for Bitcoin BTC $91,698.48 , it typically ends up on centralized exchanges where it is converted into traditional currency.

Recently, eXch, a cryptocurrency exchange, rejected claims that it helped launder money stolen in the Bybit hack. What did the exchange say? Read the full story.