THORSwap, a decentralized exchange (DEX) powered by multi-chain THORChain, has entered maintenance mode to prevent bad actors from moving illicit funds through the platform.
On October 6, THORSwap went into “maintenance mode” as an immediate measure to counter the potential movement of illicit funds. The decision comes after consultation with advisors, legal counsel and law enforcement agencies. According to To the original ad.
One 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 firm against any and all criminals…
— THORSwap #BetterThanCEX (@THORSwap) October 6, 2023
Bad actors often use cross-chain platforms like THORSwap to move funds across multiple blockchains, making them untraceable. THORSwap acknowledged the ongoing impasse and decided to find a permanent ban for the abuse.
“THORSwap will remain in this (maintenance) mode until a more permanent and robust solution can be implemented to ensure the continued security and integrity of the platform.”
While most of the community did not welcome the decision to temporarily shut down the platform, the move is attributed to DEX’s intention to serve its customers in the long term. The company did not share any other information about the ongoing investigations and treatment plans.
THORSwap did not respond to Cointelegraph’s request for comment.
Related: Binance will stop BUSD lending by October 25
While THORChain is working to strengthen its security measures before restarting its services, decentralized financial (DeFi) lending protocol Yield Protocol has announced the decision to permanently shut down.
The reason for the upcoming shutdown of the Yield Protocol is due to lack of commercial demand and increasing regulatory pressures.
We have made the difficult decision to end the Return 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 31. https://t.co/oHnCGgeP13
— Yield Protocol (@yield) October 3, 2023
“All borrowing and lending will end by December 31,” Yield Protocol confirmed as it announced the cancellation of the launch of the fixed interest rate series in March 2024. Unfavorable cryptocurrency regulations in the US, Europe and the UK became one of the main reasons for the timely shutdown of Yield Protocol.