THORChain Faces Regulatory Challenges Amid Developer Departures

According to PANews, THORChain is experiencing significant internal challenges as key developers are set to leave the project. Core developer TCB has indicated that he may also step down due to the inability to swiftly prevent North Korean funds from entering the network. TCB highlighted concerns over THORChain's lack of decentralization, noting that its primary infrastructure is controlled by a few North American companies, which poses regulatory compliance risks. TCB revealed that ETH transactions on THORChain have been suspended, and the development team is working on blocking specific wallet addresses at the Bifrost layer, with plans for a governance vote. However, some validators quickly resumed transactions after the ETH suspension, indicating deep divisions within the community. He warned that a significant portion of THORChain's current transaction volume involves stolen funds, which could lead to regulatory interventions at a national security level if not addressed. TCB also criticized the infrastructure design of THORChain, stating that it makes it difficult for validators to scale and that its decentralization is far below that of ETH and BTC, making it vulnerable to regulatory actions. Earlier reports indicated that the Bybit hacker has laundered over 50% of the stolen ETH, primarily converting it to BTC through THORChain.