THORSwap, the DEX (decentralized exchange), that runs on the THORChain multichain protocol, began operating in “maintenance mode” on October 6th. The purpose is to prevent malevolent actors from transferring illegal funds via the platform. The actions were undertaken by the protocol as it sought to immediately counter any possible movement of illegal funds.
THORSwap’s Prompt Decisions
THORSwap enacted the decision, albeit seemingly promptly, following consultations with law enforcement, advisers, and legal counsel, as per the announcement made originally. THORSwap, and other platforms that function on multichains, are often used by malevolent actors to transfer funds across several blockchains. The action helps in making the funds harder to trace, if not completely untraceable.
The current predicament has been acknowledged by THORSwap. As such, they further announced that a permanent answer for the misuse is being sought. Until then, they stated that the maintenance mode will be enforced. The community’s majority were not very welcoming of the sudden decision to momentarily cut off access to the multichain platform. However, it was reasoned that the decision was a show of intent of the Decentralized Exchange to ensure a longer-term service for its customers.
No more information regarding the investigations that are still ongoing was shared by the company. Neither were any further remediation plans detailed. For now, THORChain continues to work on strengthening existing measures for security before services can be restarted.
In related news, Yield Protocol, a lending protocol using DeFi (Decentralized Finance), announced that it will shut down permanently by the end of the year. They cited the lack of demand for business and increasing pressure from regulation in the UK, Europe, and the US as the major reasons. Until December 31st, the series of fixed rates implemented for December 2023 will be the sole active series.
