THORswap Implements Restrictions on Users from Sanctioned Countries
THORswap, a decentralized exchange on the THORchain network, has updated its terms of service to restrict users from U.S.-sanctioned countries. The platform aims to prevent residents or citizens of countries sanctioned by the United States, the United Kingdom, or the European Union from using its front-end interface. To enforce this restriction, THORswap has partnered with an undisclosed data provider to monitor user addresses from these jurisdictions. The team behind THORswap has emphasized their commitment to preventing the flow of illicit funds and ensuring compliance with regulations.
Interface Suspension Following FTX Hack
In response to the FTX hack, where $470 million was stolen, THORswap temporarily suspended its interface on October 6th. The hacker had used the platform to convert large amounts of ether into bitcoin in an attempt to launder the stolen assets through chain-hopping. However, despite the suspension, the hacker managed to move funds through other venues on the Thorchain network. On-chain analytics firm Elliptic reported that the bridged bitcoin was subsequently passed through Sinbad, a mixer service allegedly affiliated with North Korea’s Lazarus Group. However, there is speculation that Sinbad may have Russian connections instead.
Hot Take: THORswap Strengthens Compliance Measures
THORswap’s decision to update its terms of service and restrict users from sanctioned countries demonstrates its commitment to compliance and preventing illicit activities. By partnering with a data provider and implementing extra guardrails, THORswap aims to ensure that it does not facilitate illegal fund flows. This move follows the temporary suspension of its interface after being involved in the FTX hack. While challenges remain in deterring hackers and money launderers, such measures are crucial for building trust and maintaining integrity within the decentralized exchange space.
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