THORSwap Enters Maintenance Mode Due to Illicit Funds
The decentralized exchange THORSwap, built on the THORChain protocol, has announced that it is temporarily transitioning into maintenance mode. This decision comes as a response to the rise of potentially illicit funds being moved through the platform. THORSwap made a statement on X (formerly Twitter), expressing their strong stance against criminal actions and emphasizing that such activities have no place on their platform.
In order to address this issue and ensure the continued security and integrity of the platform, THORSwap consulted with legal experts, advisors, and law enforcement agencies. They will remain in maintenance mode until a more permanent and robust solution can be implemented.
FTX Hacker’s Funds Moved Through THORChain
On-chain analysts Lookonchain have reported that the individual or entity behind suspicious withdrawals from the collapsed crypto exchange FTX, commonly known as the “FTX hacker,” transferred 22,500 ETH (worth $38 million) this week. These transfers involved swapping ether for bitcoin using THORChain and Railgun. The FTX hacker currently holds over 163,000 ETH (worth $275 million) across multiple wallets.
Taylor Monahan from Consensys stated that hackers and money launderers in Russia and North Korea utilize THORChain for their operations. She claimed that over the past four months, more than 50% of the ether to THORSwap router to bitcoin transactions were stolen funds.
Increase in Transaction Volume on THORChain
THORChain has experienced a significant increase in transaction volume this month, reaching a record of $355 million on October 5th, according to THORChain Explorer.
THORSwap Assures Community of Swift Resumption
While the THORSwap team did not provide any additional details, they assured their community that they are working diligently to resume operations as soon as possible. Further updates will be provided in due course.
Hot Take: THORSwap Takes Swift Action Against Illicit Funds
THORSwap’s decision to enter maintenance mode in response to the movement of potentially illicit funds demonstrates their commitment to maintaining the security and integrity of their platform. By consulting with legal experts and law enforcement agencies, THORSwap is taking proactive measures to address this issue. The increase in transaction volume on THORChain highlights the platform’s growing popularity but also raises concerns about potential misuse. It is crucial for decentralized exchanges like THORSwap to remain vigilant against illicit activities and implement robust solutions to ensure the safety of user funds.
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