The hacker behind the massive Bybit exploit has begun laundering stolen Ethereum through THORChain, moving approximately 270,000 ETH ($605 million)—more than half of the 400,000 ETH stolen in last week’s attack. Despite this, the hacker still holds around 229,395 ETH ($514 million), raising concerns over further liquidation attempts.

Laundering Through THORChain Sparks Controversy

Blockchain analytics firm Arkham Intelligence reported that the stolen assets were primarily converted into native BTC and funneled through wallets linked to North Korean hacking groups like Lazarus. The incident has put THORChain in the spotlight, leading to internal conflicts within the project.

A key THORChain developer, known as “Pluto”, announced his resignation after the protocol’s validators overturned an earlier decision to block suspicious transactions. Another validator has also threatened to step away, signaling deeper fractures within the team.

Market Impact: ETH and RUNE Under Pressure

The attack has sent ETH and RUNE prices tumbling, as uncertainty looms over the fate of the stolen assets:

• ETH dropped 9.8%, trading at $2,123.
• RUNE surged initially but fell back to $1.33, after peaking at $1.60 post-hack.
• Trading volumes have spiked—ETH’s daily volume hit $28 billion, while RUNE saw a surge from $800M to $1.2B.

These sharp fluctuations indicate a high level of market anxiety, with investors closely monitoring whether the hacker will continue offloading more assets.

What’s Next?

The Bybit hack, now one of the largest crypto heists in history, serves as another reminder of the risks associated with centralized exchanges and cross-chain protocols. The market’s reaction will depend on whether further laundering attempts take place and how THORChain responds to its growing security concerns.

For now, traders remain on edge, watching for any further price movements in ETH, BTC, and RUNE.

⚠️ This article does not constitute financial advice. Conduct your own research before making investment decisions.