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FBI urges DeFi platforms and RPC operators to block Binance exploit transactions

U.S. law enforcement has urged decentralized finance platforms, RPC operators, and THORSwap to block transactions tied to Binance exploiters, prompting sharp debate within the crypto community over compliance and enforcement.

A person viewed from behind wearing a blue jacket with FBI printed in yellow lettering across the back.
Image: @MrketInsider

The Federal Bureau of Investigation, along with partner agencies including the Secret Service and IRS Criminal Investigation, is urging decentralized finance platforms, THORNode operators, RPC operators, and instant exchanges to block transactions associated with Binance exploiters. In a published blog notice, authorities highlighted efforts to prevent TraderTraitor actors from laundering stolen assets through DeFi services and virtual asset service providers.[1][2][3]

Responding to the report, THORChain co-founder Chad Barraford stated that THORNode operators hold zero non-public data, with all activity already available in real time, describing the open setup as a best-case scenario for investigators that eliminates the need for subpoenas.[2]

Security researcher Tay quickly pushed back against Barraford's assessment, arguing that federal authorities are not seeking information but explicitly instructing operators to block transactions tied to North Korea. Tay described the public advisory as a direct warning shot to platforms facilitating the flow of illicit funds.[2]

Key facts

  • The FBI, USSS, and IRS-CI issued an advisory urging DeFi platforms, THORNode operators, RPC node operators, and exchanges to block transactions from Binance exploiters.
  • Authorities tied the laundering activity to TraderTraitor actors.
  • THORChain co-founder Chad Barraford stated that THORNode operators hold no non-public information and require no subpoenas, calling it a best-case scenario for investigations.
  • Security researcher Tay told Barraford that the advisory was a warning shot explicitly directing THORChain and node operators to block DPRK transactions rather than a request for data.

Sources · 3 sources

  1. AN

    Aggr News@AggrNewsPost on X ·

    FBI URGING DEFI PLATFORMS INCLUDING THORSWAP, RPC & DEFI OPERATORS TO BLOCK TRANSACTIONS FROM BINANCE EXPLOITERS: BLOG https://t.co/IseAyvXwHa

    Open source
  2. DN

    DEGEN NEWS@DegenerateNewsPost on X ·

    NEW: SECURITY RESEARCHER @tayvano_ TELLS @THORChain CO-FOUNDER @CBarraford THE FBI IS "TELLING YOU EXPLICITLY TO BLOCK THE DPRK TRANSACTIONS" "IT'S A WARNING SHOT BRO. TAKE THE FUCKING WARNING AND STOP FUCKING AROUND" https://t.co/0HEyEhQOLG

    Open source
  3. MI

    Market Insider@MrketInsiderPost on X ·

    JUST IN: THE FBI URGES THORSWAP AND OTHER DEFI PLATFORMS TO BLOCK TRANSACTIONS FROM THE BINANCE EXPLOITERS https://t.co/bvKxoa44Fj

    Open source