Published: February 25, 2025
24
20
294

maybe its just me but i think when over 85% of your chain's volume is literally just money laundering for kim jong un then maybe the validators want to consider doing something before ofac smacks the entire thing with one giant sanction

Image in tweet by samczsun

yeah sorry i fired off the tweet out of frustration, happy to have a reasonable discussion here. when i said 85% i was referring to the daily volume per the screenshot attached, i think the wording could have been more precise but also i think there was sufficient context clues i agree that if dprk was using uniswap in the same way that theyre using thorchain at the moment (more on this later), it would be problematic. i think theres a reason that this isnt happening though, and when dprk was laundering funds (with intent to obscure source of funds) via tornado cash, ofac did in fact sanction both the contracts and the frontend despite it being permissionless i think your proposal in the other tweet (https://x.com/Pluto9r/status/1... is a good idea and i hope that more people in the thorchain community adopt it now why is thorchain unique here? yes, all swaps on thorchain are transparent and all sources and destinations are visible. however, there is one key difference between thorchain and all dexes: thorchain grants access to the bitcoin blockchain, and its well known at this point that dprk cashes out by converting funds to btc, then to usdt, then to rmb. any project that enables value to move to btc is at higher likelihood of being (ab)used by dprk than projects that dont. however, there is an additional complication. when trying to convert 1.5 billion dollars worth of eth to btc, theres just not a lot of places that can support that volume. dprk originally was laundering large volumes of eth through exch, a no-kyc exchange. the way this works is that exch maintains reserves of eth and btc, and when dprk sends eth, they send btc. how do they then replenish those btc reserves? through thorchain. this is why i say thorchain is responsible for laundering, because the chain of ownership is broken by exch. now, as it turns out, exch doesnt have enough btc in their reserves to accommodate this volume, but thats ok, because they also allow users to directly bridge via thorchain. yes, this is more traceable, but thorchain is still enabling the movement of funds from a non-btc chain to btc, which is a critical step for dprk launderers. i dont know what the solution here is. all i know is that thorchain offers a service that essentially acts as a bridge, dprk relies on such bridges to launder funds, and because of how well exch/thorchain work for these purposes, dprk has moved hundreds of millions of dollars of funds through this pipeline

Share this thread

Read on Twitter

View original thread

Navigate thread

1/2