THORChain Faces Scrutiny Over Processing Funds Linked to Lazarus Group

THORChain continues to face criticism for its role in processing stolen funds, including approximately $387.5 million from a recent cyberattack and previous thefts attributed to the North Korean Lazarus Group. The protocol maintains a stance of neutrality, operating as a permissionless router. While developers previously attempted to pause operations on the Ethereum version of the network to block Lazarus-linked funds in February 2025, the move was quickly reversed by node operators, highlighting the ongoing debate between network decentralization and the prevention of illicit activity.