THORSwap goes into 'maintenance mode' to counter illicit funds movement

THORSwap, a decentralized exchange (DEX) powered by multichain THORChain, has entered maintenance mode to prevent bad actors from moving illicit funds through the platform.

On Oct. 6, THORSwap transitioned into “maintenance mode” as an immediate measure to counter the potential movement of illicit funds. The decision comes after consultation with advisors, 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 like THORSwap to move funds across multiple blockchains, making them untraceable. THORSwap has acknowledged the ongoing predicament and decided to find a permanent block to 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

While THORChain works toward strengthening its security measures before restarting its services, decentralized finance (DeFi) lending protocol Yield Protocol announced the decision to permanently shut down.

Yield Protocol’s upcoming shutdown was accredited to the lack of business demand and rising regulatory pressures.

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, 2023

“All borrowing and lending will end by December 31st,” confirmed Yield Protocol as it announced canceling the March 2024 fixed rate series launch. Unfavorable crypto regulations in the United States, Europe and the United Kingdom became one of the main reasons for Yield Protocol’s untimely shutdown.