A core THORChain developer has stepped away from the project after a controversial decision to block transactions linked to North Korean hackers was swiftly overturned. The departure signals mounting tensions within the decentralized cross-chain swap protocol.
Known only as “Pluto,” the developer announced on Feb. 27 via X (formerly Twitter) that they would no longer contribute to THORChain, though they pledged to ensure an orderly transition of responsibilities.
**Moving on from THORChain**
— Pluto (9R) (@Pluto9r) February 27, 2025
Validators, developers, members of the community: effectively immediately, I will no longer be contributing to THORChain. I will remain available to Nine Realms as long as I am needed and to ensure an orderly hand-off of my responsibilities. It has…
Pluto’s exit follows a dramatic turn of events triggered by THORChain validator “TCB,” who revealed that they were one of three validators who voted to halt Ethereum (ETH) transactions on the platform to prevent the Lazarus Group—a notorious North Korean hacking collective—from laundering stolen funds. However, the decision was quickly reversed after a fourth validator vote negated the action.
TCB later stated they would also leave THORChain unless a rapid solution is implemented to block North Korean-linked transactions. This controversy arose after blockchain analysts revealed that the Lazarus Group had funneled over $605 million in ETH through THORChain, part of the staggering $1.5 billion stolen from crypto exchange Bybit on Feb. 21.
Despite the internal strife, THORChain has witnessed record-breaking transaction volumes, processing nearly $860 million in swaps on Feb. 26 and another $705 million the following day. However, concerns over regulatory scrutiny have intensified, particularly after the FBI urged exchanges and validators to curb illicit flows from North Korea.
THORChain founder John-Paul Thorbjornsen distanced himself from the situation, asserting that sanctioned wallet addresses had never interacted with the protocol. He argued that the network cannot be expected to censor transactions in real time and pointed out that stolen funds are eventually swapped for fiat at centralized exchanges.
TCB, however, expressed skepticism about THORChain’s decentralization, arguing that a small group of actors controls the network. They warned that if censorship concerns persist, key stakeholders might exit the ecosystem, jeopardizing its long-term sustainability.
Also Read: Bybit Hacker Launders $605M via THORChain, Shaking Crypto Market and ETH Prices
The unfolding saga raises pressing questions about the balance between decentralization and compliance, as THORChain navigates its most contentious crisis yet.
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