The conflict within THORChain's development team has escalated as several members departed due to disagreements over blocking transactions linked to North Korean hackers.
Dispute Over Transaction Blocking
THORChain developer "Pluto" announced their resignation after a vote to block transactions tied to North Korean hackers was overturned. Pluto stated they would remain accessible for the handover of responsibilities. Meanwhile, validator "TCB" expressed a view in favor of halting ETH trading on the platform.
National Security Threat and North Korea's Involvement
This week, the Lazarus Group, associated with North Korea, moved some of their stolen funds through THORChain. The FBI raised concerns, confirming North Korea's involvement in the Bybit hack. THORChain's founder John-Paul Thorbjornsen noted that none of the wallets listed by the FBI and the US Treasury interacted with their protocol.
Decentralization Issues in THORChain
Validator TCB pointed out THORChain's insufficient decentralization, making it vulnerable to regulatory attacks due to a limited base of validators. TCB highlighted how design choices impede onboarding new validators.
The current developments underline the importance of decentralization in blockchains and highlight the significant challenges THORChain faces amid increasing regulatory scrutiny.
