Lazarus Group Launders $1.5 Billion from Bybit Using THORChain
The Lazarus Group has laundered $1.5 billion from the Bybit hack, converting a significant amount of Ethereum into Bitcoin via the decentralized exchange THORChain. Key points include:
- Arkham Intelligence confirmed the laundering involved moving 500,000 ETH.
- THORChain processed over $5.5 billion in volume since the hack, with notable links to stolen funds.
- Critics accused THORChain validators of negligence; defenders argue that censorship is unrealistic for decentralized platforms.
- THORChain earned a $3 million fee during the incident but faced backlash for allowing the transactions.
- THORChain’s token RUNE temporarily spiked due to transaction volume but soon lost gains.
- The incident raises concerns about decentralized exchanges and their role in illicit activities without oversight.
This case highlights vulnerabilities within DeFi platforms and ongoing debates regarding their responsibilities in preventing financial crimes. The long-term impact on THORChain's reputation remains uncertain as discussions around decentralization and regulation continue.