THORChain-based decentralized exchange THORSwap has announced that it has temporarily entered maintenance mode in response to an increase in potentially illicit funds flowing through the platform.
THORSwap Goes to Maintenance Mode After Illegal Activity Surges
In a statement published on X, THORSwap expressed deep concern about the potential movement of illicit funds, particularly through THORChain and THORSwap.
The platform emphasized that it is against all kinds of criminal activities and underlined that such actions have no place on the THORSwap platform.
The move comes after extensive consultations with legal experts, consultants and law enforcement.
To protect the ongoing security and integrity of the platform, THORSwap has made the decision to remain in maintenance mode until a more permanent and robust solution is implemented.
One of the key events leading to this decision is recent activity involving an individual or organization commonly known as the “FTX hacker”, who has been linked to suspicious withdrawals from the collapsed crypto exchange FTX.
This actor reportedly made transfers involving 22,500 ETH ($38 million) this week.
The transfers specifically involved swapping Ethereum for Bitcoin via THORChain and Railgun. It is noteworthy that the FTX hacker currently holds more than 163,000 ETH (approximately $275 million) in Ethereum in multiple wallets.
*This is not investment advice.
