Unveiling North Korea’s Preference for THORChain in Crypto Laundering
Investigators reveal that North Korea exploited THORChain to launder $1.2 billion in the aftermath of a monumental crypto heist.
Key Insights:
- In February, North Korea executed a massive theft amounting to $1.4 billion, marking the largest crypto heist to date.
- THORChain has been pivotal in facilitating North Korea’s laundering efforts, allowing 85% of the hacked funds to be transferred efficiently.
- Despite inquiries from authorities, THORChain has opted not to block transactions related to the heist, raising questions regarding its decentralization claims.
John-Paul Thorbjornsen, an ex-pilot and present-day crypto innovator, has recently been showcasing his new wallet, Vultisig, which is powered by THORChain, emphasizing its enhanced security features compared to competitors.
Amid a surge in activities associated with the THORChain network, analysts have identified alarming trends pointing to the involvement of North Korea’s Lazarus hacking group. This followed the infamous February hack of the Bybit exchange, wherein THORChain emerged as a cornerstone for laundering efforts, shifting nearly $1.2 billion as the primary conduit for the Kim regime to circulate crypto funds.
Authorities such as the FBI have called for a halt in THORChain transactions associated with the heist; however, network wallets, including Asgardex and Vultisig, have shown no compliance.
Although THORChain’s major stakeholders are publicly identified and are typically based in regions with stringent anti-money laundering regulations, they reportedly accrued over $12 million linked to this illicit operation.
Thorbjornsen, known in the community as JP Thor, reassures that despite the chaos, the protocol continues to function seamlessly: “The protocol keeps running and swapping despite chaos. It’s doing great, actually.”
The U.S. Treasury Department has previously sanctioned various blockchain services linked to money laundering activities, sparking debates within the crypto community about whether THORChain’s role warrants similar scrutiny. Critics contend that the network’s operations lean towards centralization despite claims of decentralized autonomy.
Concluding, THORChain’s position as a facilitator for North Korea’s illicit transactions is poised to become a national security concern, as investigations deepen into its connections with dubious funds.
