THORChain (RUNE) Price Tanks 14% as Developer Known as Pluto Announces Departure Following North Korea Transactions Controversy

A developer from THORChain, known as Pluto, has announced his departure from the decentralized liquidity protocol following a contentious decision involving North Korean-linked transactions.

A developer from THORChain is stepping down from his role at the decentralized liquidity protocol following a contentious decision on how to handle North Korean-linked transactions.

The developer, known as Pluto, confirmed his departure from the protocol in a social media post on Monday.

“I will no longer be contributing to THORChain, effective immediately. I will remain available to Nine Realms as long as I am needed and to ensure an orderly hand-off of my responsibilities,” he announced.

This move comes after a vote by the network’s validators to block these transactions was swiftly overturned by the developers.

The decision to reject a proposal to block transactions from North Korean-linked addresses came despite a strong push by several prominent validators, who banded together to halt trading on the network’s Ethereum chain in protest.

The move sparked concerns among members of the community about the platform’s governance and resilience to regulatory challenges.

After a period of discussion among validators, it was agreed that a proposal to disable ETH trading would be brought forth for a vote.

If approved, this measure would have brought new contributions to a halt and brought a complete shutdown of ETH trading on THORChain.

However, despite the validators voting in favor of the proposal, it was ultimately rejected by the developers, who cited concerns about setting a precedent for shutting down tokens at the behest of external parties.

This decision led to several validators, including TCB, announcing their intention to step back from the network.

In a statement, TCB warned that if the platform doesn’t quickly adopt measures to prevent such illicit flows, more contributors may leave.

TCB added that the Lazarus Group, a North Korean hacking collective, had been funneling stolen cryptocurrency through THORChain. This situation has brought increased scrutiny from both validators and external authorities.

Moreover, the FBI and other agencies have urged blockchain platforms to block transactions linked to the Lazarus Group. The group has been implicated by U.S. authorities in a series of major cryptocurrency thefts, including a record-breaking hack that saw $1.5 billion in funds stolen from Atomic.

The move to shut down ETH trading was met with mixed reactions. Some members of the community expressed support for the decision, arguing that it was necessary to comply with regulatory obligations and maintain the network’s reputation.

However, other members of the community, including several developers, voiced opposition, arguing that it undermined the principles of decentralization and permissionless innovation on which THORChain was founded.

This controversy has sparked a broader debate about the nature of decentralization and the role of community members in shaping blockchain protocols.