THORSwap Suspends Operations Amid Suspicious Transactions
THORSwap, a decentralized exchange (DEX) on the THORChain network, has temporarily halted its operations due to concerns over suspicious transactions. The platform detected funds with potential illicit connections being transferred through its platform. As a result, the value of the token used on the THORChain network, RUNE, dropped by 14% and is now valued at $1.754, according to CoinGecko.
Enhanced Security Measures and Zero Tolerance for Illicit Actions
THORSwap announced that it has zero tolerance for any criminal actions and will remain suspended until enhanced security measures are in place. Although certain features such as LP actions, Earn, Borrow, and Staking are still operational, the timeline for full resumption of the platform remains uncertain. The THOR community spokesperson emphasized their strong stance against illegal activities on the THORSwap platform.
Connections to FTX Hack and Community Reactions
The questionable transactions on THORSwap are reportedly linked to a hack targeting FTX in November 2022, where approximately $600 million was stolen from various wallets. Some members of the THOR community have drawn parallels between THORSwap’s actions and centralized exchanges shutting down without considering community input. Others have referenced Uniswap’s approach in blocking wallets tied to unauthorized activities while continuing exchange functions uninterrupted.
Warnings from Crypto Experts
Taylor Monahan, the founder of MyCrypto Wallet and a product manager at MetaMask, reiterated her prior warnings about such risks. Eric Kryski from Bidali also traced a significant amount of stolen funds to Thorchain as early as July. Many community voices expressed discontent with how the THOR team addressed the situation and suggested looking to Uniswap as a model for handling similar issues.
What is ThorChain?
THORChain is a decentralized cross-chain liquidity protocol that enables asset swaps between different blockchain networks. It serves as a settlement layer for swapping assets across eight chains, including Bitcoin, Ethereum, Binance Chain, Avalanche, Cosmos Hub, Dogecoin, Litecoin, and Bitcoin Cash.
Native Assets and Unique Features of THORChain
THORChain allows users to swap native assets between supported chains without relying on synthetic assets or “wrapped tokens.” Wrapped tokens are often issued and held by centralized exchanges, posing security risks. THORChain is a non-profit organization that distributes all RUNE funds used for fees to network participants.
Hot Take: Time to Invest in THORChain?
Given the current low price of RUNE compared to its previous highs above $2, now may be an opportune time to invest in THORChain. Once the current issues are resolved and enhanced security measures are implemented, it is likely that the price will quickly surpass $2.
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