THORChain, a decentralized protocol enabling users to swap cryptocurrencies across various blockchains, has seen what can be described as an unwanted windfall after the Bybit hack.
The decentralized protocol THORChain, designed for seamless cryptocurrency swaps across different blockchains, has seen a massive influx in activity following the recent Bybit hack.
According to data from DefiLlama, the protocol processed a record-high $4.66 billion in swaps in the week ending March 2. Notably, the platform crossed the $1 billion mark in a single day on Sunday.
This surge can be attributed to a North Korean hacking entity's actions. After stealing $1.4 billion in ether from the crypto exchange Bybit on February 22, the entity used THORChain to swap and launder the funds, leading to a significant increase in the protocol’s activity.
"Starting from the initial Bybit Exploiter wallet, funds were sent across a further stretching net of wallets. With each 'hop' further from the main wallet, there was an increasing amount of intermediary wallets and the smaller the value transfers became," blockchain analytics firm Nansen stated in a recent report.
"From hop 2, the hacker started interacting with third-party entities to start swapping and laundering the funds. Entities with the most inflow volume from the hack include THORChain, Paraswap, Mantle, OK DEX and DODO," the firm added.
CoinDesk has contacted THORChain for comment on the matter.
Onchain analyst EmberCN highlighted that the hackers managed to launder the entire ETH balance over a period of ten days, ultimately generating record revenue for THORChain.
"The Bybit hackers have laundered 499,000 ETH ($1.39 billion) stolen from Bybit over 10 days. In the process, the price of ETH has dropped by 23% (from $2,780 to $2,130 today). The main channel used by hackers to launder money is THORChain, which has also earned $5.9 billion in transaction volume and $5.5 million in handling fees due to hackers' money laundering," EmberCN noted on X.
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