ThorChain, a prominent decentralized liquidity protocol, recently witnessed an unprecedented spike in its transaction volume, hitting $355 million in a single day and amassing over $1 billion within just five days.
The crypto community has raised eyebrows at this sudden surge in activity, with some speculating a connection to increased hacker activities, particularly in cross-chain transactions for Bitcoin (BTC).
Data suggests that over the recent four-month span, a significant portion (more than 50%) of ETH to BTC conversions through ThorSwap routers had links to stolen funds.
These concerns are not without foundation. Information provided by @tayvano_ suggests that an additional 114 exploiter addresses, associated with exchanges such as FTX and CoinEx, as well as multiple chain exploits, have emerged on the network.
An additional 114 exploiter addresses linked to FTX, CoinEx, and various chain exploits have been included, as provided by @tayvano_.Nonetheless, exploiter volume on @THORChain for the past 4 months accounts for only 4.3%. The predominant 95.7% is from non-exploiter swaps. https://t.co/qEDnW1l658 pic.twitter.com/jWwze1WAUb
— banban (@banbannard) October 4, 2023
However, it’s vital to approach these figures with a nuanced perspective. Despite the spotlight on illicit activities, exploiter volume on ThorChain for the past quarter accounted for a mere 4.3% of the total transaction volume. A staggering 95.7% originated from legitimate, non-exploiter swaps, highlighting the utility and organic growth of the platform.
The ThorChain network‘s resilience and the broader implications of these figures for decentralized finance (DeFi) remain to be seen. The onus lies on platforms like ThorChain to strike a balance between fostering innovation and ensuring robust security measures.
Recently, ThorChain appears to be a hotspot for cybercriminal activities. A staggering 65% of ETH to BTC conversions on ThorSwap came from stolen funds. Disturbingly, a significant portion of this malicious activity seems to originate from the Russian/CIS region and North Korea, positioning the platform in a precarious situation.
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