DeFi Daily News
Sunday, June 1, 2025
Advertisement
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
No Result
View All Result
Home Markets Crypto Market

rewrite this title Thorchain faces developer exodus amid North Korean money laundering scandal

Gino Matos by Gino Matos
February 27, 2025
in Crypto Market
0 0
0
rewrite this title Thorchain faces developer exodus amid North Korean money laundering scandal
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on Telegram
Listen to this article


rewrite this content using a minimum of 1200 words and keep HTML tags

Thorchain is experiencing a developer exodus, as hackers from Lazarus Group are using the interoperability-focused blockchain to launder Ethereum (ETH) stolen in the Bybit hack.

A Thorchain developer known as TCB announced that Pluto, the protocol’s unofficial lead developer, is stepping down. TCB himself has also indicated his imminent departure unless a swift resolution is implemented to prevent illicit flows linked to North Korean actors.

TCB’s statement highlighted a long-standing divide between Thorchain’s messaging around decentralization and the reality of its infrastructure.

According to the developer, the protocol claims to be censorship-resistant and permissionless, but in reality, a small group of corporate actors control most of the network’s infrastructure and user-facing services. He argued that this contradiction exposes the protocol to regulatory scrutiny and threatens its long-term viability.

Thorchain is a permissionless protocol focused on interoperability. However, given its feature of swapping native assets on their respective blockchains, bad actors have leveraged Thorchain’s infrastructure to obscure stolen funds. This is the case following the Bybit hack, which resulted in $1.5 billion lost on Feb. 21.

Recently, TCB, Pluto, and another developer known as Oleg Petrov used their power as validators to vote to halt ETH trading on Thorchain to prevent Lazarus Group from laundering money.

Centralization and validator limitations

Thorchain’s design choices have contributed to what TCB describes as an overly centralized network incapable of withstanding regulatory pressure.

Unlike Ethereum and Bitcoin (BTC), which boast thousands of independent validators, Thorchain relies on a smaller, tightly controlled group of operators. The network’s requirement for full infrastructure replication across all supported blockchains further complicates validator onboarding, limiting decentralization.

Efforts to address these concerns, including proposals for lighter node implementations and an expanded validator set, have been met with resistance. 

While other protocols, such as Chainflip, have swiftly implemented censorship measures at the network level, Thorchain has yet to adopt similar strategies, which contradicts industry trends.

Crisis on the horizon

According to TCB, many wallet providers that facilitate the bulk of Thorchain’s non-illicit transaction volume already enforce transaction filtering on their frontends. If Thorchain continues to allow illicit funds to flow through its network, these providers may sever their integrations, further isolating the protocol from legitimate liquidity sources. 

TCB warned that the departure of these providers, combined with regulatory scrutiny, could result in a crisis for Thorchain. With major infrastructure providers and developers now reconsidering their involvement, the protocol faces operational and reputational risks.

The concerns raised reflect broader industry tensions between decentralization ideals and the realities of compliance with global anti-money laundering frameworks. The potential for Thorchain to be implicated in North Korea’s largest-ever crypto theft raises the stakes significantly.

TCB asserted that when most transaction flows consist of stolen funds linked to a sanctioned state actor, the issue moves beyond protocol governance and into national security territory. He added that Thorchain may face enforcement actions that could jeopardize its operations if it is perceived as a conduit for large-scale money laundering.

Mentioned in this article

Blocscale

and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website http://defi-daily.com and label it “DeFi Daily News” for more trending news articles like this



Source link

Tags: developerexodusfacesKoreanLaunderingMoneyNorthrewriteScandalThorchaintitle
ShareTweetShare
Previous Post

New: TMZ updates on Gene Hackman suspicious death, timeline

Next Post

Gene Hackman death: 911 call released | LiveNOW from FOX

Next Post
Gene Hackman death: 911 call released | LiveNOW from FOX

Gene Hackman death: 911 call released | LiveNOW from FOX

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result
  • Trending
  • Comments
  • Latest
rewrite this title Haliey Welch Breaks Silence on Hawk Tuah Coin Collapse

rewrite this title Haliey Welch Breaks Silence on Hawk Tuah Coin Collapse

May 6, 2025
Exploring the Top Option for Streaming On-Chain Data – Moralis Web3 | Enterprise-Grade Web3 APIs as an Alternative to QuickAlerts

Exploring the Top Option for Streaming On-Chain Data – Moralis Web3 | Enterprise-Grade Web3 APIs as an Alternative to QuickAlerts

July 12, 2024
Revisiting Jennifer’s Body: A Review of the 2009 Horror Film

Revisiting Jennifer’s Body: A Review of the 2009 Horror Film

August 27, 2024
Can I buy A House With Crypto? RWA DeFi Revolution

Can I buy A House With Crypto? RWA DeFi Revolution

April 16, 2025
Brendan Murphy Releases ‘Spacemen’ Bitcoin Art Series Through Ordinals on Coin Media

Brendan Murphy Releases ‘Spacemen’ Bitcoin Art Series Through Ordinals on Coin Media

July 18, 2024
Forecasting Reserve Rights (RSR) Prices: 2024, 2025, 2026, 2027 Through 2030

Forecasting Reserve Rights (RSR) Prices: 2024, 2025, 2026, 2027 Through 2030

September 18, 2024
rewrite this title Dotemu’s CEO on how it makes new games that feel retro

rewrite this title Dotemu’s CEO on how it makes new games that feel retro

June 1, 2025
rewrite this title Hilaria Baldwin Calls Alec Baldwin ‘The Boss’ In Playful Post | Celebrity Insider

rewrite this title Hilaria Baldwin Calls Alec Baldwin ‘The Boss’ In Playful Post | Celebrity Insider

June 1, 2025
rewrite this title and make it good for SEOHELOC rates today, June 1, 2025: Interest rates on home equity lines of credit move lower again

rewrite this title and make it good for SEOHELOC rates today, June 1, 2025: Interest rates on home equity lines of credit move lower again

June 1, 2025
rewrite this title Jade Cargill breaks silence after failing to qualify for women’s Money in the Bank

rewrite this title Jade Cargill breaks silence after failing to qualify for women’s Money in the Bank

June 1, 2025
rewrite this title and make it good for SEOFPIs infuse Rs 19,860 cr in equities in May on strong domestic fundamentals, global eco indicators

rewrite this title and make it good for SEOFPIs infuse Rs 19,860 cr in equities in May on strong domestic fundamentals, global eco indicators

June 1, 2025
rewrite this title Ethereum Climbs In Key Channel After Triple Consolidation Setup | Bitcoinist.com

rewrite this title Ethereum Climbs In Key Channel After Triple Consolidation Setup | Bitcoinist.com

June 1, 2025
DeFi Daily

Stay updated with DeFi Daily, your trusted source for the latest news, insights, and analysis in finance and cryptocurrency. Explore breaking news, expert analysis, market data, and educational resources to navigate the world of decentralized finance.

  • About Us
  • Blogs
  • DeFi-IRA | Learn More.
  • Advertise with Us
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.