THORChain Generates $5M in Fees, $5.4B in Volume Since Bybit Hack

Since the infamous $1.4 billion Bybit hack, the cross-chain asset swap protocol THORChain has been at the center of controversy over its role in facilitating illicit crypto transfers. However, what's less known is that the protocol has not only survived this storm but also thrived, generating a staggering amount of revenue and volume in the process.

According to data from the THORChain explorer, the protocol generated over $5 million in total revenue since the hack, with its asset swap volume hitting record highs. This surge in activity was driven by none other than the Bybit hacker themselves, who used the protocol for moving funds and sparking widespread concern over its role in illicit crypto transfers.

Centralized crypto exchange Bybit was hacked on February 21st in what is now considered the largest hack in crypto history, with a total value of over $1.4 billion stolen. The North Korean state-affiliated Lazarus Group was identified as the main suspect by blockchain security firms and continued laundering the stolen funds using THORChain for a significant part of the transfers.

Since then, THORChain has processed an impressive amount of volume, exceeding $5.4 billion in total swap volume, with a revenue generation of around $5.5 million. This milestone was achieved just 27 days after the hack, with the protocol's asset swap volume exceeding $1 billion on February 27th alone.

Despite this remarkable surge in activity, THORChain remains under scrutiny for its role in facilitating illicit funds. A developer quit the protocol following a vote to block North Korean hacker-linked illicit funds being reverted, citing concerns over the lack of KYC (Know Your Customer) checks and off-switch features.

"Effectively immediately, I will no longer be contributing to THORChain," wrote the crosschain swap protocol's core developer, Pluto, in a February 27 X post. "THORChain just helped North Korea launder $605 million. No KYC, no off switch, no resistance. Lazarus Group jacked Bybit for $1.5 billion in February 2025, then funneled the stolen ETH through THORChain like it was built for them," added crypto author Yogi.

Blockchain analytics firm Elliptic flagged over 11,000 cryptocurrency wallet addresses suspected of being linked to the Bybit exploit, with more expected as investigations continue. Meanwhile, Bybit CEO Ben Zhou confirmed that $280 million of the stolen funds had gone dark, meaning they were laundered and no longer traceable.

The controversy surrounding THORChain serves as a reminder of the ongoing battle between decentralization and illicit activity in the crypto space. While protocols like THORChain have enabled unprecedented levels of liquidity and innovation, they also present risks that need to be addressed. As the industry continues to evolve, it's essential to strike a balance between facilitating legitimate transactions and preventing illicit activities.

For now, THORChain remains at the center of this debate, with its future direction hanging in the balance. Will the protocol continue to thrive despite these controversies, or will it face increased scrutiny from regulators and investors alike? Only time will tell, but one thing is certain – the story of THORChain's rise to prominence is far from over.