THORChain Hits Record $4.66B in Swaps Amid Bybit Hack Fallout

THORChain, a decentralized cross-chain swap protocol, witnessed an unprecedented surge in activity following the Bybit hack. According to DefiLlama, THORChain processed a record $4.66 billion in swaps in the week ending March 2, surpassing $1 billion in a single day.

The spike in transaction volume coincided with the Feb. 22 Bybit breach, where North Korean hackers stole $1.4 billion in ether (ETH). On-chain analysts indicate the attackers leveraged THORChain to launder stolen funds, contributing to the platform’s record-breaking performance.

Blockchain analytics firm Nansen reported that stolen assets were moved through multiple wallets, with the laundering process intensifying after the second transaction hop. Major platforms linked to the illicit fund flow include THORChain, Paraswap, Mantle, OK DEX, and DODO.

On-chain investigator EmberCN revealed that the hackers fully laundered 499,000 ETH ($1.39 billion) in just ten days, leading to a 23% decline in ETH prices, from $2,780 to $2,130. THORChain alone processed $5.9 billion in transaction volume, generating $5.5 million in fees due to the influx of illicit funds.

The incident highlights the growing use of decentralized protocols for laundering stolen assets, raising concerns about security and regulatory oversight. CoinDesk has reached out to THORChain for comment.