THORSwap Temporarily Suspends Operations Amid Hacker Money Laundering Concerns


After the debates regarding “aiding” hackers in transferring dirty money into the Bitcoin network, the THORSwap decentralized exchange (DEX) has switched its interface to maintenance mode with the message: “stands firmly against any and all criminal actions.”

Recently, a series of asset transfers occurred in several high-profile hacking cases such as, Atomic Wallet, and the FTX exchange event, all of which were converted to Bitcoin through the THORSwap exchange. It has been observed that 65% of the total transaction volume of stolen funds has been routed through the THORChain protocol. An example is a recent FTX hacker who continuously transferred over 60,000 ETH (approximately 100 million USD) of stolen funds to the THORSwap platform.

On October 6th, the leading DEX on the THORChain network, THORSwap, issued a statement on this issue. The project has acknowledged that hackers have used THORSwap for illegal money transfers. After considering advice from advisors and lawyers, THORSwap has decided to temporarily switch the THORSwap interface to maintenance mode. This action is taken to quickly prevent any illegal transactions involving dirty money.

Currently, the project has not shared any further details about a solution that can completely prevent the actions of hackers and when the maintenance mode will end. THORSwap will maintain this mode until a better solution is found to ensure the protocol’s security.

However, the DEX will only interrupt the token swap feature, while other services such as providing liquidity, borrowing, lending, and staking will continue to operate normally.

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