ZachXBT and JP Engage in a Dispute Over Asgardex's Role in Handling $900K Fees Related to Bybit Hack and Money Laundering

Blockchain researcher ZachXBT and THORChain developer JP have found themselves in a discussion on X about the fees accrued by Asgardex, an open-source desktop application designed for THORChain and Maya Protocol.

Asgardex operates as an independent desktop app facilitating decentralized exchanges within the THORChain ecosystem. It stands out as the only available open-source frontend framework, serving as a crucial reference point for many developers in the field.

The crux of their debate revolves around the question of whether Asgardex ought to return the $900,000 collected from transactions connected to money laundering actions perpetrated by Bybit hackers. ZachXBT contends that keeping the funds would be tantamount to criminal activity, stating, ‘Numerous contributors to Asgardex have outright refused to return the $900K made from the Bybit hack orchestrated by DPRK. Several teams have opted to return their fees. The commitment to keeping Thorchain as decentralized as possible without suppressing protocol activity is commendable, but profiting knowingly from the hack and then refusing to return those fees is simply criminal,’ ZachXBT asserted.

On the flip side, JP argues that developers of open-source cryptocurrency wallets, committed to self-custody solutions, will not reimburse the funds unless such actions are enforced by law.

He posed the question, ‘Should we require ETH and BTC nodes to refund their transaction fees? What about the developers of GETH or BTCCore who create the software funded through grants and donations?’

JP also voiced concerns regarding the inconsistency in holding Ethereum and Bitcoin nodes to the same standards of reimbursement concerning transaction fees.

ZachXBT Accuses Projects Linked to JP of Employing IT Workers from the DPRK

In response to the ongoing debate, ZachXBT criticized JP, alleging that projects affiliated with him neglected necessary due diligence and ended up hiring IT personnel from North Korea. These individuals were reportedly on the payroll for several months before ZachXBT alerted the community last year, a fact that has not been made public until now.

ZachXBT He further stated, ‘My assertion here is focused on Asgardex retaining fees, which is essentially just a centralized interface for Thorchain. Any attempt to contrast a centralized interface with a decentralized network is simply flawed.’

The community appears to be split; some back JP's stance, arguing that accountability should focus on those directly responsible for the wrongdoing rather than the service provider. Conversely, others recognize the platform's critical role and stress its legal obligations regarding the incident.

The hackers responsible for stealing Following the hack, it is estimated that around $1.4 billion worth of cryptocurrency from the Bybit exchange has been virtually entirely moved and converted to Bitcoin. On February 21st, Bybit disclosed that a ‘sophisticated attack’ on one of its wallets led to the loss of 401,346 Ethereum, valued at about $1.4 billion at the time, marking it as the largest cryptocurrency theft in history and potentially the biggest heist ever recorded. Various blockchain monitoring firms, researchers, and the FBI have linked the breach to the North Korean regime.