THORChain Earned Nearly $10M From Bybit Stolen Funds
Blockchain analyst Ember reported that more than 90% of funds exchanged through THORChain may be linked to illicit activities. Most of the cryptocurrency stolen from Bybit last year was reportedly moved through THORChain, generating nearly $10 million in fees for the cross-chain protocol over 10 days. Some funds stolen from Bitget have also recently passed through THORChain, producing about $1 million in fees so far. The findings highlight THORChain’s significant role in cross-chain liquidity, but also raise concerns about compliance, money laundering risks and potential regulatory action. Traders should monitor THORChain, RUNE liquidity, exchange risk controls and any response from law-enforcement or regulators.
Neutral
The immediate market impact is neutral because the report does not announce a protocol exploit, insolvency event or confirmed enforcement action. High fee revenue could be viewed as evidence of strong transaction demand and cross-chain usage, potentially supporting RUNE-related sentiment in the short term. However, the alleged concentration of illicit funds creates substantial reputational and regulatory risks. Similar cases involving mixers, privacy tools and exchanges have often triggered sanctions, delistings, tighter compliance controls and sharp volatility when authorities take action. Traders may initially focus on the reported fee income, but any investigation, restrictions on THORChain routes or reduction in exchange liquidity could pressure RUNE and related DeFi assets. Longer term, the effect will depend on whether THORChain improves transaction screening and compliance while preserving permissionless liquidity. Until there is independent verification or an official response, the data should be treated as an analyst estimate rather than a definitive measure of illicit activity.