THORChain’s Daily Trading Volume Hits $859.61M

With its unique architecture enabling direct cross-chain asset swaps, THORChain has become increasingly popular among crypto users. The surge in volume began immediately after the Bybit breach and continues to accelerate. On February 21, 2025, trading volume was around $83.16 million, but by February 26, it had surged to $859.61 million.

In just five days, trading volumes exceeded $2.53 billion.

Cybercriminals commonly use decentralized exchanges and mixers to conceal traces and launder funds after hacking attacks. These processes are often automated not only to speed up asset movement and minimize error risks but also to evade rapid responses from law enforcement agencies. 

Related: Decoding the THORChain (RUNE) Protocol: A Comprehensive Review

THORChain, ThorSwap, and the Fraud Controversy

ThorSwap, the leading exchange platform powered by THORChain, has faced controversy due to its high volume of fraudulent transactions. Studies revealed that over 50% of ETH converted to BTC via the protocol came from wallets linked to criminals and hacker groups, including entities from North Korea and Russia.

Initially, the ThorSwap team maintained a neutral stance, emphasizing that their platform was open to all users without restrictions. However, under public pressure and to mitigate legal risks, the developers introduced an automated monitoring system to detect and block suspicious transactions.

Community Reaction

The decision sparked heated debates among crypto enthusiasts. Some argued that a decentralized platform should maintain neutrality and avoid interfering with transactions, as it is merely a tool and the responsibility lies with the users. On the other hand, supporters of the new measures stressed the importance of countering illegal activities and complying with regulations to minimize the risk of sanctions.

Related: RUNE Declines 20% Following ThorFi Suspension

Despite these measures, the issue of money laundering on THORChain remains significant. Pluto (9R), a core protocol developer, noted that the team is actively working to combat the platform’s misuse for laundering stolen assets. He acknowledged that some funds had already passed through the exchange but urged the community not to use this incident as an opportunity to attack competitors:

Communities on both sides love taking times like these to point out illicit flows on competing platforms. It’s a cheap shot, and I won’t tolerate those in the THORChain community who take this opportunity to kick Chainflip while they’re taking heat. As a team that’s been through it before, and felt existential heat, we know how it feels.

THORChain Isn’t the Only One Affected

The issue of illegal transactions extends beyond THORChain. Just days ago, blockchain analyst ZachXBT accused the automated exchange eXch of laundering some of the funds stolen during the Bybit hack. In response, eXch denied the allegations, pointing out that THORChain had approved similar transactions as well.

On its stolen funds tracking page and bug bounty program, Bybit listed eXch as the only negative actor, while Tether, ChangeNOW, and other platforms received positive feedback. This is likely because eXch publicly refused to freeze the stolen assets. Notably, THORChain is absent from the statistics page.