Thorswap Halts Operations Amid FTX Hack Fallout
The decentralized exchange Thorswap has temporarily suspended its operations after receiving funds from the FTX hacker. Thorswap made a statement on social media, expressing their opposition to any criminal actions.
FTX Hacker Sends Funds to Thorswap
Following the recent movement of thousands of ether by the FTX hacker, it was observed that the funds were sent to Thorswap and the defi application Railgun. Thorswap announced on October 6, 2023, that the dex was undergoing maintenance.
Temporary Transition to Maintenance Mode
Thorswap decided to pause its operations temporarily after careful evaluation and consultation with advisors, legal counsel, and law enforcement. The dex will remain in maintenance mode until a more permanent solution is implemented.
RUNE Value Declines
The native crypto asset of Thorchain, RUNE, experienced an 8.6% drop in value following the news of Thorswap’s temporary pause. The developers are working diligently to restore the application as soon as possible.
Limited Functionality During Pause
While swaps are currently paused, other actions such as LP actions, Earn (savers), Borrow (lending), and Staking actions are still operational on Thorswap.
Stolen Funds Concerns
Taylor Monahan, a product manager at Consensys, raised concerns about stolen funds being routed through Thorswap. According to Monahan, over 50% of the ether to bitcoin transactions on Thorswap in the past four months involved stolen funds.
Hot Take: Temporary Pause Amidst Security Concerns
Thorswap’s decision to temporarily halt operations in response to funds from the FTX hacker highlights the importance of security in the crypto space. By prioritizing the safety of its users, Thorswap aims to address any potential vulnerabilities and ensure a more robust solution going forward.
By
By
By
By
By