Decentralized crypto trading platform THORSwap has resumed full operations this week after a six-day halt triggered by the detection of funds connected to bankrupt exchange FTX.
THORSwap paused swaps and liquidity actions on October 6th as a precautionary move once the anonymous FTX exploiter’s activity was identified on the exchange.
According to blockchain analytics firm Elliptic, the exploiter converted ETH to BTC on THORSwap, traceable on-chain.
The platform said its immediate shutdown aimed to investigate and isolate any linked accounts before carefully restoring service. In an update on October 12th, THORSwap stated it is now back online for users to resume decentralized trading of over 5,500 assets.
As part of its relaunch, THORSwap published updated terms barring illegal usage and noted that it may restrict accounts violating sanctions or money laundering laws.
Also, the updated terms also bar users from accessing THORSwap from the countries sanctioned by the U.S., U.K., or the European Union. It includes Iran, Iraq, North Korea, Sudan, Syria and others.
Furthermore, the updated terms read, “THORSwap reserves the right to terminate your access to the THORSwap Services at any time, without notice, for any reason whatsoever, including without limitation a violation of these terms.”
However, critics claimed this contradicted the platform’s decentralized ethos.
ShapeShift founder Erik Voorhees argued that THORSwap differs from the decentralized THORChain network it leverages. As a centralized company, THORSwap can make judgment calls like service shutdowns.
THORSwap also revealed a new partnership with an unnamed industry leader to bolster protections against illicit transactions. The exchange said fine-tuning may still occur in the coming days.
