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Thorchain is already insolvent, and validators have decided to suspend the network during the voting for the restructuring plan.
Wu learned that TCB, a member of the Thorchain community, disclosed that Thorchain is now in a state of insolvency, with debts including $97 million in borrowing and approximately $102 million in savings and synthetic assets. If there is any significant debt redemption and/or deleveraging of depositors and synthetic assets, Thorchain will definitely not be able to fulfill its obligations priced in BTC and ETH. Validators have decided to suspend the network during the voting and restructuring plan. John-Paul Thorbjornsen, the founder of Thorchain, stated that ThorFi will be paused via Node; with the help of TCB, Tyler Reynolds, and Nine Realms, the restructuring will be carried out within 90 days; the protocol itself is still functioning well; assets earned by the protocol can be used to handle the debt after the restructuring.