THORFi Recovery Group Seeks $200M from THORChain After Collapse

On May 19th, 2025, a group of creditors, known as the THORFi Recovery Group, announced their intention to pursue legal action against the blockchain network THORChain and its principals. This move comes in the wake of a significant collapse that occurred on January 23, 2025, where users of THORChain’s THORFi lending and savings programs suffered losses exceeding $200 million. The potential lawsuit aims to recover these lost digital assets, and other creditors of THORChain may join the legal proceedings.

The THORFi Recovery Group is being represented by McDermott Will & Emery, a prominent law firm specializing in FinTech and blockchain litigation since 2013. McDermott is known for having the industry’s largest crypto-exclusive legal team and has been recognized by various legal rankings for its expertise in crypto litigation. The firm is assisted by J.S. Held, a global consulting firm that provides specialized forensic, investigative, and advisory services. J.S. Held’s cryptocurrency practice is renowned for its blockchain tracing, asset recovery, and expert witness work in complex crypto fraud and insolvency cases. The firm has previously supported high-profile litigation and recovery efforts involving major crypto collapses, such as those of Celsius and Voyager.

J.S. Held’s involvement in this case includes tracing stolen assets, preparing evidentiary reports, and providing testimony in court proceedings. Their expertise in handling complex crypto fraud and insolvency cases is expected to be crucial in the recovery efforts for THORChain’s creditors. The THORFi Recovery Group has set up a website, THORChainLawsuit.com, and an email contact, ThorFiRecoveryGroup@mwe.com, for creditors to learn more about the lawsuit and how they can participate.

The legal action against THORChain highlights the growing challenges faced by the cryptocurrency industry, particularly in the areas of mismanagement and insolvency. The collapse of THORChain’s THORFi programs has left a significant number of users with substantial financial losses, and the potential lawsuit seeks to address these issues by recovering the lost digital assets. The involvement of experienced legal and consulting firms like McDermott Will & Emery and J.S. Held underscores the complexity and importance of this case, as well as the need for specialized expertise in handling crypto-related legal matters.