Finance

Bybit Hacker’s Money Laundering Boosts THORChain with $2.91 Billion in Transaction Volume and $3 Million in Fees

14 hours ago
Bitcoin Ethereum News

In a series of events that has drawn the eyes of the crypto world, THORChain has seen a wild explosion in transaction volume and fee income—all due to a money laundering operation associated with a hack on Bybit, one of the major cryptocurrency exchanges.

The hacker who pulled off the Bybit breach has been busy using THORChain to launder his stolen funds, and this copious amount of activity has made its way into the THORChain books. So much so that it has effectively doubled the decentralized exchange’s transaction volume. You’d think this is a pretty good ad for THORChain. Too bad it is all because of the work of a criminal.

Massive Surge in Transaction Volume and Fees

THORChain averaged $80 million in daily transactions before a hacker began to tunnel dirty money through the protocol. On February 22, 2025, the hacker set upon a not uncommon technique in the world of crypto for obscuring the provenance of stolen funds: using a decentralized exchange (in this case, THORChain) to swap the ill-gotten Ethereum for quieter Bitcoin.

In total, THORChain saw a staggering $2.91 billion hit its smart contracts in just five days.

This was obviously a huge amount of not good. What followed was obvious and unavoidable in the context of “decentralized finance”—THORChain began using THORChain to swap otherwise silent Bitcoin for, at a guess, stealthy Ethereum. Remedial measures then had to ensue.

The crypto community is not the only one taking notice of the rapid rise in transaction volume; it has also brought in serious cash for THORChain. The impetus behind all the activity may not be entirely above board, but the decentralized platform is certainly profiting from the upturn in business. The volume translated into income: about $3 million for the almost $3 billion worth of transactions. The money came in the form of fees for executing trades between different cryptocurrencies across THORChain’s decentralized exchange.

Although these increased fees benefit THORChain, the transactions’ nature—due to a hack—brings up significant ethical and legal problems. Regardless, THORChain has gained a substantial amount of revenue and is seeing significant user metric increases.

Price Impact on $RUNE

THORChain’s native token, $RUNE, has also been affected by the increase in transaction volume and, with it, handling fees. Demand has surged for $RUNE. Why? Because with platform activity booming, $RUNE has been in demand—driving up its price. Increased usage of a platform often correlates directly with demand for its token. Tokenomics 101.

In this case, the operation led by THORChain laundered a lot of money poured into the THORChain token through Crypto1555 and other backdoor schemers. Illicit activity around THORChain underscores the uptick in THORChain token price. It offers cover to THORChain developers and insiders who benefit every time the token THORChain is hiked. Volatility is not our friend. Long-term, we suspect this is not sustainable.

For THORChain, this may short-term financial success, but it could also bring unwanted regulatory eyes when the platform is already under close watch by regulators concerned its potential role in illegal activities. If involved in a money laundering scheme, and even if it is not intentional, could put THORChain right under the noses of plenty of law enforcement and financial regulators across the world.

Ethical Concerns and Legal Risks

The hacker is apparently using THORChain to do these illicit things, and it’s making THORChain a little dirty in the public eye.

1. In the case of BTC, it is a common perception that those who hold, use, or convert BTC in any form are at risk of making their funds illegal.

2. Murphy’s law would suggest that those fears are enough to make BTC holders, users, converters, or cashers susceptible to being seen as having illegal funds.

3. Even if they don’t and end up being doxxed, BTC converts who don’t THORChain think are guilty of using a way to handle stolen funds that is no different from what hallowed hacker and cryptocurrency saint Julian Assange has long been alleged to do.

This development has shone a light on how illicit actors can use decentralized exchanges like THORChain. Centralized exchanges must follow strict Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, but decentralized exchanges are often much less regulated. Even this is an understatement because it is not clear that they are regulated at all. The recent Unsolvable Problem hack raises the more general question of how we should regulate all these canyoneering, rapids-rushing, tokencrazy places where money can just disappear.

For THORChain, this involvement raises the crucial issue of whether the platform will suffer any legal or reputational harm. THORChain may not have had the slightest clue that laundering was going on, but it’s still a possible fallout from association with illegal activity. Ignorance on the part of the platform is sometimes, albeit rarely, an effective defense in criminal cases. But going forward, in a maturing crypto market, platforms like THORChain may be pressured to tighten up their oversight and security afoul of which may endanger their own unsuspecting customers.

Conclusion: Short-Term Gains, Long-Term Challenges

The decentralized exchange has experienced a sudden and dramatic increase in both transaction volume and fee income, thanks to the recent Bybit hack and the laundering of funds through THORChain. In just five days, THORChain saw $2.91 billion worth of transactions and generated $3 million in fees. The hack’s fallout has also sent the price of $RUNE “to the moon” and has benefited THORChain holders in the short term.

Involvement in a high-profile hack brings up significant ethical and legal problems that could have serious ramifications for a long time. Even though THORChain might financially gain from all the extra traffic and trading that’s now going on, it is also under a much tighter spotlight from regulators and law enforcement, and what they’re saying now could lead to serious and “lengthy” challenges later on. And how they deal with these challenges will either salvage or seriously tarnish their long-term reputation and viability.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Source: https://nulltx.com/bybit-hackers-money-laundering-boosts-thorchain-with-2-91-billion-in-transaction-volume-and-3-million-in-fees/