THORSwap, a decentralized exchange powered by THORChain, announced it is “temporarily transitioning” into maintenance mode in response to an increase in potentially illegal money transfers through the platform.
THORSwap has posted on Twitter, “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 actions.”
The move has been taken in consultation with legal experts, advisors, and law enforcement agencies. The platform will temporarily remain in maintenance mode until a more permanent and robust solution can be implemented to ensure the platform’s continued security and integrity.
The action effectively halts trading operations. But lending, borrowing, and staking actions are all perfectly functional services.
This action was taken after the FTX hacker moved 22,500 ETH ($38 million) this week, including exchanging ether for Bitcoin through ThorChain. The FTX hacker holds over 163,000 ETH ($275 million) in ether across several wallets and is known for suspect withdrawals from FTX, the collapsed crypto exchange.
The crypto community has raised questions about the decentralization of THORSwap. One of the Twitter users said, “This should not happen on decentralized protocols even if the [funds] are coming from an hacked…. so not decentralized at all,” while another user sarcastically commented, “Very decentralized. Good job team!”