Reports that Thorchain, a decentralized exchange (DEX) platform, is refusing to block alleged North Korea-backed hackers from laundering ether (ETH) stolen from Bybit have been criticized by the exchange’s supporters. Labeling the reports as FUD (fear, uncertainty, and doubt), Thorchain supporters have questioned why the DEX is being singled out when other protocols, such as Uniswap, Sky and Buildernet, are also seeing the same funds move through their platforms.

According to a post on X by a user identified as Fincontrarian, Thorchain is a neutral and decentralized protocol; therefore, it cannot be accused of aiding the Bybit hackers. The user argued that if allowing stolen funds through a “permissionless network” like Thorchain is deemed enabling money laundering, Uniswap or bridges moving stolen funds are also guilty of the same.

The pushback by Fincontrarian and others followed the resignation of one of Thorchain’s leading developers, known as Pluto (9R), on Feb. 27. Although the developer did not share what prompted the abrupt departure from contributing to Thorchain, speculation is rife that the developer was dissatisfied with the decision not to halt ETH trading. Another developer, TCB, threatened to quit if a solution to stop North Korean flows was not adopted.

Following the Bybit hack, which has been described as the largest cryptocurrency theft in history, key stakeholders in the cryptocurrency industry have taken steps to block funds associated with the breach. As reported by Bitcoin.com News, other entities, such as Chainflip, a decentralized cross-chain service, have updated their respective protocols to block hackers, something Thorchain has seemingly not done.

However, Fincontrarian argued in the post that this should not be seen as a Thorchain problem but a decentralized finance (DeFi)-wide issue. The user also questioned why a front end, such as Trust Wallet, which is also allowing swaps involving stolen Bybit funds, is not facing scrutiny.

“Most hacker transactions are happening through frontends like TrustWallet. TrustWallet is a US-based company, yet they haven’t halted swaps.If this was truly illegal, wouldn’t they be the first to act? If TrustWallet isn’t being shut down, why would THORChain be at risk?,” the user asked.

Concerning the possible involvement of the Federal Bureau of Investigation (FBI), which belatedly confirmed the Lazarus Group as the attacker in the Bybit hack, Fincontrarian said the U.S. agency is not the authority in this case.

Since the Bybit hack, Thorchain swap volumes surged, surpassing $700 million on Feb. 26. Some social media users have attributed the volume growth to Lazarus Group hackers, who are said to have moved quickly to liquidate the stolen digital assets. However, Fincontrarian asserts opponents are singling out Thorchain because people “need an excuse to FUD.”

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