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THORSwap has acknowledged the ongoing misuse of its decentralised exchange (DEX) and is actively working to discover a lasting solution to this issue.
THORSwap, a decentralised exchange (DEX) powered by the multi-chain THORChain protocol, has initiated a state of “maintenance mode” to thwart any illicit fund movements through the platform by malicious entities.
This decisive action was taken on October 6th as an immediate response to the potential illicit fund transfers.
The decision was made after consultations with advisors, legal experts, and law enforcement agencies, as per the original announcement.
Bad actors frequently exploit cross-chain platforms like THORSwap to shuffle funds across various blockchains in a bid to obscure their origins.
THORSwap has acknowledged the persistent challenge and is determined to devise a permanent remedy to counter such misuse.
“THORSwap will remain in this maintenance mode until a more sustainable and robust solution can be implemented, ensuring the platform’s enduring security and reliability.”
Though the platform’s decision to temporarily suspend its operations was met with resistance from much of the community, it stems from the DEX’s commitment to its long-term customer service.
No further details regarding the ongoing investigations and remedial strategies have been disclosed.
As THORChain diligently enhances its security measures prior to resuming its services, the decentralised finance (DeFi) lending protocol, Yield Protocol, has made the consequential choice to cease its operations permanently.
This decision is attributed to a combination of dwindling business demand and escalating regulatory pressures in the United States, Europe, and the United Kingdom.
Bitcoinworld