THORChain's RUNE jumps 13% after Binance's record $6.3B hack amid laundering concerns

THORChain’s native token, RUNE, increased by over 15% in the last 24 hours, even as the broader market experienced a $160 billion decline following Binance’s hack, which resulted in the centralized exchange (CEX) losing approximately $6.30 billion.

The token's performance appears decoupled from the general market conditions currently. Authorities and market participants note that illicit actors have frequently utilized THORChain for laundering funds stolen from the cryptocurrency market.

Evidence suggests a connection between recent incidents; funds from the Binance hack were mixed with assets from the Bitget incident, which received $388 million after passing through THORChain to a comparable address. This pattern suggests a potential link between the actors involved.

Network activity has shown a significant rise, with swap volumes indicating $62.08 million moved on the mainnet and $94 million processed via bridges in other wallets. Fees reached a weekly high of $11K, confirming heightened network usage.

Regarding the hack itself, $8.94 million was converted into Bitcoin [BTC], while Ethereum [ETH] accounted for $6.17 million, with $1.18 million swapped for other tokens. Consequently, RUNE’s daily trading volume jumped by more than 393% due to this network spike.

Concerns persist among users that the chain might facilitate fund laundering, particularly because other chains, such as Arbitrum One [ARB], froze related funds, while THORChain did not. Immediately following the event, THORChain issued a statement: "Digital money needs digital freedom."

Despite the lack of direct support for the hack, the timing of this statement has generated considerable apprehension. One participant on X commented, "On the price charts, RUNE rose aggressively from $0.58 to $0.723, but it could not stay above $0.70 for long."

Technical indicators show that while the altcoin briefly dropped below $0.60 after the incident, it recovered, establishing that level as a floor. The $0.70 level has been a resistance point for the preceding month, but strong buying pressure has failed to overcome this barrier.

The Chaikin Money Flow (CMF) has reinforced capital inflows into the chain, moving from -0.04 to 0.31. Analysts maintain that RUNE will remain in a bearish structure on the 4-hour chart unless $0.70 can be converted into support.

This divergence between the token's upward movement and the broader market downturn underscores the ongoing regulatory and operational scrutiny surrounding decentralized protocols utilized in illicit finance.

Why it matters

The use of THORChain in laundering activities raises significant regulatory concerns about protocol oversight and compliance. The divergence of RUNE's performance from the broader market highlights the unique risks associated with decentralized finance infrastructure during major security incidents.