THORChain Restarts Most Swaps Amid Laundering Concerns
THORChain resumed swaps on most chains halted after an Oct. 31 Ethereum reorganisation triggered a refund bug. By 3:50 p.m. ET on Nov. 3, Bitcoin, Ethereum, Tron, Bitcoin Cash, Dogecoin, Litecoin and Zcash swaps were running again. BNB Smart Chain, Cosmos Hub and Solana remained halted. THORChain had not announced a timetable for reopening them.
The restart followed warnings from Pangolin Intelligence founder Jonty. He said node operators voting to reactivate the network would know North Korean hackers could use THORChain to launder stolen funds. The FBI has also asked operators to block addresses linked to the hackers. THORChain says node operators decide when chains are safe to re-enable and that no single entity controls the network.
Jonty estimated that more than 99% of THORChain volume on certain days associated with North Korean-linked hacks was laundering activity, but cited no dataset; the figure is an unverified estimate. For traders, the restart restores cross-chain swap access across most supported networks, while remaining outages and scrutiny over illicit flows leave operational and reputational risks in focus.
Neutral
The restart is operationally positive for THORChain users: swaps are available again on most affected chains, which may restore liquidity and trading routes. However, three networks remained halted, and the article reports no confirmed timeline for their return. That uncertainty may keep traders cautious and can contribute to short-term volatility in THORChain-related activity.
The main counterweight is reputational and regulatory risk. Concerns that North Korean hackers may use cross-chain services to move stolen funds could prompt closer scrutiny from exchanges, investigators and node operators. Similar incidents involving bridge exploits or laundering allegations have often led to temporary service restrictions and volatile token reactions, although this article does not establish a direct effect on RUNE’s price or provide market data.
In the short term, traders are likely to watch the status of the remaining chains, swap volumes, liquidity and any official response. A full, stable reopening could ease operational concerns; further suspensions or evidence of illicit flows could renew selling pressure and caution. Longer term, the impact will depend on THORChain’s ability to improve resilience and address compliance and security concerns. On the information available, the mixed operational recovery and unresolved risks support a neutral market view.