THORChain Developer Quits After Failed Bid to Halt North Korean Transactions

A shocking turn of events has unfolded in the world of cryptocurrency, as a developer at the crosschain swap protocol THORChain has publicly announced their exit from the project. The developer, known only by their handle "Pluto," revealed that they will no longer be contributing to THORChain, effective immediately.

According to Pluto's statement on X, posted on February 27, they made this decision after a vote to block North Korean hacker-linked transactions was reverted within minutes. The vote had been put in place by the validator "TCB" as part of an effort to cut off the Lazarus Group, a notorious hacking collective that has been using THORChain to move millions of dollars' worth of cryptocurrency.

Pluto's departure comes on the heels of another validator, Oleg Petrov, who announced that they too would be exiting the project if a solution is not found to stop North Korean flows. TCB had also threatened to leave the network if it does not adopt measures to prevent NK flows.

A $605 Million Haul for the Lazarus Group

Meanwhile, the Lazarus Group has reportedly sent $605 million worth of Ethereum (ETH) through THORChain, according to Lookonchain. This latest development is a major blow to THORChain's reputation and raises questions about the protocol's ability to prevent North Korean hacking.

A Surging Volume, But at What Cost?

THORChain's volumes have skyrocketed in recent days, with the protocol processing nearly $860 million in swaps on February 26 - its biggest-ever daily volume. However, this surge in activity has also raised concerns about the potential for North Korean hackers to exploit the system.

A Response from THORChain Founder

THORChain founder John-Paul Thorbjornsen has responded to the controversy, stating that he has no involvement with the project and that none of the sanctioned wallet addresses listed by the FBI and US Treasury's Office of Foreign Assets Control have ever interacted with the protocol.

A Concern About Centralization

TCB, another validator on the network, has raised concerns about the centralization of THORChain. They argued that the protocol is not decentralized enough to survive a regulatory attack and that certain design choices made it complicated to onboard new validators.

"You can say as many times as you want that a blue car is red, but it won't make THORChain truly decentralized, censorship-resistant, and permissionless," TCB wrote. "It's a handful of actors running all the infra and a handful of corporate actors providing all the user flows."

A Potential for Change?

Despite the challenges and controversies surrounding THORChain, there is still hope for change. The protocol's founder has stated that THORChain can expand or contract as required easily, and that nodes are churned out if they don't follow the protocol's rules.

A Call to Action

As the cryptocurrency community continues to grapple with the implications of North Korean hacking, it is clear that action must be taken. THORChain developers, validators, and users must work together to find a solution to this problem and ensure that the protocol remains secure and decentralized.