The Bybit hacker has begun laundering a staggering 54% of the stolen funds through THORChain, according to blockchain analytics firm Lookonchain. The cybercriminal has already funneled 270,000 ETH, worth approximately $605 million, through the cross-chain swap protocol. Despite this massive outflow, the hacker still retains 229,395 ETH, valued at around $514 million at the time of reporting.
The #Bybit hacker is laundering funds via #THORChain!
— Lookonchain (@lookonchain) February 28, 2025
So far, the #Bybit hacker has laundered 270K $ETH($605M, 54% of the stolen funds) and still holds 229,395 $ETH($514M). pic.twitter.com/NtcKUpxsxc
Crypto Market Shaken as ETH, RUNE Prices Drop
The fallout from the hack has significantly impacted the cryptocurrency market. Ethereum (ETH) has experienced a sharp 9.8% decline over the last 24 hours, trading at $2,123, per CoinGecko data. Meanwhile, THORChain’s native token, RUNE, which initially peaked above $1.60 post-hack, has since slipped to $1.33. The sell-off signals heightened market uncertainty as investors react to the laundering activities.
Increased trading activity has also been observed in key ETH trading pairs. The ETH/USDT pair surged to $12 billion in daily trading volume, while ETH/BTC volume climbed to $4.5 billion, reflecting widespread market volatility. Overall, ETH’s total trading volume on February 28 skyrocketed to $28 billion, showcasing the scale of the ongoing panic.
THORChain Faces Internal Struggles Amid Controversial Decision
In a further twist, the incident has sparked internal conflict within THORChain. A key developer, known as “Pluto,” has resigned following the reversal of a governance vote that sought to block transactions linked to wallets associated with North Korean hacker group Lazarus. Another validator has also threatened to step away, adding to the turmoil within the protocol.
**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…
Bybit Hack Exposes Crypto’s Centralization Risks
Bybit’s $1.5 billion security breach has reignited debates over the vulnerabilities of centralized exchanges. Dom Harz, co-founder of BOB – “Build on Bitcoin,” emphasized that the incident serves as a stark reminder of the industry’s unresolved security issues.
“We’ve been hypnotized by price spikes, memecoin frenzies, and media spectacles, forgetting that crypto was meant to be a new financial system,” Harz told Cryptonews. He also pointed out that self-custody remains too complex for most users, as many so-called decentralized platforms still rely heavily on centralized infrastructure.
Also Read: Bybit Restores Assets and Confidence Through Transparent Recovery Process
As investigations continue, the market remains on edge, with traders closely watching ETH and RUNE movements amid the ongoing laundering activity.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
