A major developer, known only as Pluto, has left the THORChain cryptocurrency project. This follows a huge argument over how the project handled transactions linked to North Korean hackers.
The Fallout Begins
Pluto announced his resignation on social media, saying he’s done with THORChain. He’ll help with the transition, but that’s it. This all started because validators initially voted to block transactions linked to North Korea, but that vote was overturned.
A prominent validator, TCB, warned that unless THORChain takes action to stop these illegal transactions, more people will leave the project. They pointed out that the Lazarus Group, a notorious North Korean hacking group, has used THORChain to move a lot of stolen crypto. The FBI and other agencies are also pushing blockchain platforms to block transactions linked to the Lazarus Group, who are responsible for massive heists, including one for $1.5 billion.
Decentralization Under Fire?
This whole situation has raised serious questions about how decentralized THORChain really is. Some validators argue it’s not decentralized enough to handle regulatory pressure or truly be “permissionless.” They say the project relies on a small number of validators, making it vulnerable to outside influence.
THORChain’s founder, John-Paul Thorbjornsen, says the nodes (computers running the network) are supposed to follow the rules, and any that don’t can be removed. He maintains THORChain is designed for open, permissionless transactions and that its nodes haven’t been directly accused of wrongdoing.
The Price of Controversy
Following the news, the THORChain token (RUNE) dropped significantly, falling 14.3% in a single day to $1.31. The future of THORChain remains uncertain.
