THORSwap goes into ‘maintenance mode’ to counter illicit funds movement

Arijit SarkarOct 06, 2023THORSwap goes into ‘maintenance mode’ to counter illicit funds movementTHORSwap acknowledged the ongoing illicit use of the DEX and is acting to find a permanent solution to the misuse.2180 Total views12 Total sharesListen to article 0:00NewsJoin us on social networksTHORSwap, a decentralized exchange (DEX) powered by the multichain THORChain protocol, has entered “maintenance mode” to prevent bad actors from moving illicit funds through the platform.

The protocol took the actions on Oct. 6 as an immediate measure to counter the potential movement of illicit funds. The decision came after consulting with advisers, legal counsel and law enforcement, according to the original announcement.Fellow THORChads,

A pressing and persistent concern has recently come to light: the potential movement of illicit funds through THORChain and, specifically, THORSwap. Such activities have no place on the THORSwap platform, and THORSwap stands firmly against any and all criminal…— THORSwap ⚡ #BetterThanCEX (@THORSwap) October 6, 2023

Bad actors often use cross-chain platforms such as THORSwap to move funds across multiple blockchains in an effort to make them untraceable. THORSwap has acknowledged the ongoing predicament and said it will find a permanent solution to counter the misuse.“THORSwap will remain in this (maintenance) mode until a more permanent and robust solution can be implemented to ensure the platform’s continued security and integrity.”

While most of the community did not welcome the decision to temporarily pull the plug on the platform, the move was attributed to the DEX’s intent to serve its customers for the long term. The company shared no further information on the ongoing investigations and remediation plans. 

THORSwap did not respond to Cointelegraph’s request for comment.

Related: Binance to shut down BUSD lending by October 25

As THORChain works toward strengthening its security measures before restarting its services, decentralized finance (DeFi) lending protocol Yield Protocol announced its decision to permanently shut down, citing a lack of business demand and rising regulatory pressures in the United States, Europe and the United Kingdom.We’ve made the tough decision to wind down the Yield Protocol. The March 2024 fixed rate series will not be launched. Only the December 2023 series remains active for borrowing and lending. All borrowing and lending will end by December 31st. https://t.co/oHnCGgeP13— Yield Protocol (@yield) October 3, 2023Magazine: The Truth Behind Cuba’s Bitcoin Revolution: An on-the-ground report# Blockchain# Funding# Cryptocurrency Exchange# Decentralized Exchange# DEXAdd reactionAdd reactionRead moreWhat is an atomic swap, and how does it work?How the actor model could enable better blockchain gaming appsOKX exec says KYC will ‘raise the bar,’ bring real capital into crypto: Blockchain Economy Dubai 2023