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THORSwap, a decentralized exchange (DEX) utilizing the multichain THORChain, has entered maintenance mode to thwart the movement of illicit funds through its platform.
On October 6, THORSwap shifted into “maintenance mode” as an immediate response to mitigate the potential transfer of illicit funds. This decision followed consultations with advisors, legal representatives, and law enforcement, as stated in the initial announcement.
Fellow THORChads,
A significant and ongoing issue has recently emerged: the potential transfer of illicit funds via THORChain and, specifically, THORSwap. Such actions are unacceptable on the THORSwap platform, and THORSwap is resolutely opposed to any and all criminal…— THORSwap ⚡ #BetterThanCEX (@THORSwap) October 6, 2023
Malicious actors frequently exploit cross-chain platforms like THORSwap to transfer funds across various blockchains, rendering them untraceable. THORSwap has recognized the current challenge and has opted to seek a permanent solution to prevent misuse.
“THORSwap will remain in this (maintenance) mode until a more permanent and robust solution can be implemented to ensure the platform’s continued security and integrity.”
Although the majority of the community did not favor the decision to temporarily suspend the platform, this action was taken with the DEX’s long-term commitment to its users in mind. The company did not provide additional details regarding the ongoing investigations and remediation efforts.
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THORSwap did not reply to Cointelegraph’s request for comment.
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As THORChain aims to enhance its security protocols prior to resuming its services, the decentralized finance (DeFi) lending protocol Yield Protocol has announced its decision to permanently cease operations.
The forthcoming shutdown of Yield Protocol was attributed to insufficient business demand and increasing regulatory pressures.
We’ve made the tough decision to wind down the Yield Protocol. The March 2024 fixed rate series will not be launched. Only the December 2023 series remains active for borrowing and lending. All borrowing and lending will end by December 31st. https://t.co/oHnCGgeP13
— Yield Protocol (@yield) October 3, 2023
“All borrowing and lending will end by December 31st,” Yield Protocol confirmed while announcing the cancellation of the March 2024 fixed rate series launch. Adverse crypto regulations in the United States, Europe, and the United Kingdom were cited as significant factors contributing to Yield Protocol’s premature shutdown.
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