The Federal Bureau of Investigation (FBI) and the US Secret Service have requested THORnode operators to block all transactions originating from addresses tied to the Binance exchange hacker. The US law enforcement directive was also sent to RPC providers and DeFi service managers, targeting the North Korean hacking group TraderTraitor, which stole $6.3 billion in funds.
The authorities’ request directly clashes with the foundational principles of a protocol designed without centralized control.
Who Bears the Legal Risk
THORChain developer Chad Barraford revealed the network’s ownership structure on the Unchained podcast. The 100 nodes supporting THORChain’s operations are currently run by only around 50 individuals. Barraford stated that dozens of these operators now risk facing federal criminal charges in the United States if they refuse to cooperate with law enforcement.
THORChain founder JP Thor took the opposite stance, urging node operators not to comply with FBI orders. Thor asserted that bowing to authorities would kill the decentralization experiment and destroy the network’s permissionless nature.
Thor also warned of the consequences should operators cave to legal pressure. According to him, if THORnode operators decide to shut down the network next week to comply with law enforcement, then “this experiment has ended.”
Voting Rules and the Asset Escape Route
Halting the THORChain network cannot be decided by a handful of parties. The system requires an approval threshold of at least one-third plus one (1/3 + 1) votes from node operators to shut down the network, or dissenting operators can choose to voluntarily exit. In its technical design, THORChain can still process transactions even when supported by only four active nodes.
Before this regulatory debate escalated, nine chains on THORChain, including Bitcoin, Ethereum, and Tron, were temporarily halted. The suspension was triggered by the system’s automated protection mechanisms after the hack was detected, rather than a manual decision by operators.
Beyond THORChain, efforts to launder the stolen assets continue. On-chain analytics account Lookonchain noted that the Binance hacker used the cross-chain protocol Relay to swap 486,970 SOL worth $46.4 million into Bitcoin to evade freezing. That amount was drawn from the total 970,522 stolen SOL the hacking group has attempted to liquidate.
For the 50 node operators, the stakes are no longer just code on a screen: following the founder’s call means risking their freedom against federal criminal charges, while complying with the FBI means putting an end to the principles of decentralization they built.
Reported via Cointelegraph.
Read also: What Is DeFi (Decentralized Finance)?
Previously: RUNE Token Surges 13% After Binance Exploit - Protocol Becomes Laundering Route for North Korean Hackers
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
