CoinDesk
RUNE rose 10.6% to $0.637 as THORChain resumed trading on most chains, while North Korea-linked TraderTraitor routed proceeds from the $6.3 billion Binance hack through the network. The attackers swapped ether for bitcoin after earlier converting funds from Tron; an earlier network halt had delayed the laundering.
Why it matters
Cross-chain swaps generate fees for THORChain, and RUNE is paired with assets in its liquidity pools and used to settle trades. But the same infrastructure can move stolen funds between networks without a centralized exchange. Bitcoin and ether balances cannot be frozen by a token issuer, unlike USDT and USDC. Issuers have frozen more than $3 billion in funds stolen from Binance, according to the seed report.
The FBI attributed the Oct. 29 theft to TraderTraitor and urged THORChain node operators, DeFi services and other crypto businesses to block transactions linked to the group. THORChain has said its emergency controls halt broader activity rather than freeze individual swaps. In September, it rejected a similar request involving addresses linked to a separate $388 million exchange breach.
Market impact
An onchain investigator estimated that about $48.3 million had been swapped through THORChain in an earlier wave, with $42.7 million received after fees and slippage. Elliptic said little of the Binance proceeds appeared to have been cashed out, with most activity so far moving assets between addresses. Binance said about $2.85 billion had been frozen and that it replenished roughly 98% of affected tokens with company funds.
The transfers remain publicly recorded, giving investigators a trail across networks. Elliptic expects further conversions into bitcoin in smaller transactions, followed by possible over-the-counter cash-outs over months. The incident also underscores the tension for cross-chain protocols: resumed activity can support RUNE-linked trading, while the same rails can attract illicit flows and renewed scrutiny.
Frequently asked questions
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Why did RUNE rise while stolen Binance funds moved through THORChain?
THORChain resumed trading on most chains, and swaps generate network fees. RUNE is paired with assets in its liquidity pools and used to settle trades.
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Why are bitcoin and ether harder for issuers to freeze than USDT or USDC?
Bitcoin and ether have no token issuer able to freeze wallet balances. Stablecoin issuers can freeze tokens such as USDT and USDC.
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What did the FBI ask crypto businesses to do?
The FBI urged THORChain node operators, DeFi services and other crypto businesses to block transactions involving TraderTraitor's addresses or funds derived from them.
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How much of the Binance hack proceeds had been cashed out?
Elliptic said a negligible amount had likely been cashed out. Most activity so far involved moving assets while keeping them in addresses linked to the theft.
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What did Binance report about freezing and replenishing affected tokens?
Binance said about $2.85 billion had been frozen and that it had replenished roughly 98% of the affected tokens with company funds.
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