Ethereum's restructuring leads to THORChain's emergency suspension, delaying the transfer of stolen funds from Binance

Cointelegraph cited the blockchain analysis company Chainalysis, stating that an Ethereum reorganization unexpectedly hindered the transfer of stolen funds from Binance related to North Korean entities. A deposit of 10 ETH was refunded twice, prompting the cross-chain protocol THORChain to trigger an emergency pause.

Reports indicate that this reorganization occurred on October 31, with THORChain processing two refunds for the same 10 ETH deposit, leading to the suspension of exchanges on 12 out of the 13 chains it supports. Chainalysis noted that this pause disrupted the cross-chain transfer paths associated with the stolen funds from Binance. Binance previously disclosed that an unauthorized transfer occurred from its hot wallet on October 29, affecting an estimated $6.3 billion, with institutions like Chainalysis linking the incident to the North Korean cybercrime organization TraderTraitor.