ThorChain Becomes Prime Target for Hackers from Russia and North Korea
In Brief
65% of ETH to BTC conversions on ThorSwap recently were stolen funds.
The platform seems to be grappling with anti-social elements, especially from the Russian/CIS region and North Korea.
In a recent tweet, X (Twitter) user Tay brought attention to a concerning trend involving ThorSwap. According to Tay, the platform seems to be grappling with anti-social elements, especially from the Russian/CIS region and North Korea. Reportedly, a whopping 65% of the funds converted from ETH to BTC through ThorSwap were identified as stolen.
Dissecting the Numbers
Over the past four months, approximately 53,183 ETH (valued at around $88 million) were converted to BTC, with individuals confirming the theft of $57 million. This substantial volume highlights the extent of illicit activities inadvertently supported by ThorSwap. These alarming figures do not even encompass an additional suspected 3,300+ ETH laundered through the platform.
- FTX Accounts Drainer – Total: 19,944 ETH (~$32m)
- Stake.com Hack – Total: 8,143 ETH + 1.64m USDT (~$15m)
- Various Individual Seed Phrase Compromises – Total: 4,195 ETH (~$7.1m)
Welp, the hackers and money launderers—both the Russian/CIS region ones and North Korean ones—are loooooving @ThorChain lately.
— Tay 💖 (@tayvano_) October 1, 2023
In fact, in the last four months, ***more than 50%*** of the ETH -> to ThorSwap Router -> to BTC have been stolen funds. 😬😬😬😬😬
rip. pic.twitter.com/V4KscNilRA
Examining the ThorChain Problem
A substantial influx of stolen funds funneled through ThorSwap underscores a glaring issue in the crypto space. Anti-social elements are exploiting decentralized and privacy-focused technologies for money laundering and other illicit activities, tarnishing these technologies’ reputation and inadvertently contributing to global criminal endeavors.
Tay, a staunch supporter of decentralized and privacy technologies, underscores the gravity of this misuse. He shared that such activities are causing significant harm to individuals and society. This real-world impact necessitates a reevaluation of the value provided by such platforms and their potential for misuse.
While decentralized technologies show promise, they must not overshadow the moral and ethical responsibilities to prevent their misuse. It is crucial to ensure that these platforms do not become safe havens for money launderers and criminals, as this is vital for the broader acceptance and growth of cryptocurrencies and related technologies.
Although the mentioned figures are not exhaustive, they emphasize a pressing concern that requires immediate attention to prevent further harm and exploitation.
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About The Author
Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
More articlesNik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
