The Federal Bureau of Investigation has requested that private entities, including THORChain node operators, RPC node operators, instant exchanges, DeFi firms, and blockchain analytics companies, block transactions linked to addresses associated with the so‑called TraderTraitor actors.
Following the request, the RUNE token lost 17.7% of its value within 24 hours. Market data showed a rise in short‑selling pressure, with higher open interest and lower funding rates.
Background on THORChain and the Binance hack
On 31 October, THORChain halted trading on several blockchains after an Ethereum one‑block reorganization caused the protocol to pay out 10 ETH that a vault never received. The halt was a precaution while developers investigated the issue, and it unintentionally delayed the movement of funds by North Korean hackers linked to a Binance breach.
The FBI specifically asked THORChain to block addresses tied to the hack. THORChain co‑founder Chad Barraford responded that node operators already have real‑time public information and that no subpoenas are required. Catherine Chan, Global Head of Business Development and Partnerships at Solv Protocol, expressed disagreement with Barraford’s view.
Market impact on RUNE
Data from Coinalyze indicated that open interest increased while funding rates fell as RUNE’s price declined, suggesting bearish speculative activity. TradingView charts showed the token slipping below the $0.60 level that had supported a bullish trend since late September. The price breach signaled a potential shift in trend, with the $0.50 supply zone providing recent demand.
Analysts noted that a further decline into the $0.41‑$0.50 range could be expected.
Summary
The FBI’s request for transaction blocking has led to a notable sell‑off in RUNE, while THORChain’s co‑founder highlighted that node operators uncomfortable with the pressure can leave the network.
