THORSwap, on October 6, 2023, announced that it has decided to temporarily suspend its trading operations due to a series of suspicious transactions involving illicitly obtained funds on the platform.
In a public announcement shared on its official social media channels, including X (formerly Twitter), THORSwap clarified that its top priority is the safety and integrity of its platform. It stated that its team is actively working on finding a more robust and secure solution to address these concerns, and during this period, the platform will remain in “maintenance mode.”
Fellow THORChads,
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…
— THORSwap ⚡ #BetterThanCEX (@THORSwap) October 6, 2023
The origins of these “illegal funds” are deeply intertwined with a broader cryptocurrency controversy centered around the FTX exchange. In 2022, FTX and its affiliated companies filed for bankruptcy following a devastating security breach where hackers absconded with a staggering 600 million in digital assets from the exchange.
Recent investigations have traced a portion of these stolen funds, valued at approximately 2,500 ETH (equivalent to $4 million), to transactions carried out using THORSwap. This alarming revelation spurred THORSwap into immediate action, leading to the suspension of its trading operations.
The platform’s development team has expressed a firm stance against any involvement in criminal activities. They stated that their proactive action is targeted at preventing further illicit activities on their platform.
While trading remains temporarily halted, THORSwap has reassured its user base that other essential services, such as lending, borrowing, and staking, will continue to function without interruption.
Interestingly, these questionable transactions have surfaced concurrently with the commencement of the trial of Sam Bankman-Fried, FTX’s former CEO.
Bankman-Fried stands accused of mismanagement and fraudulent practices during his tenure at the now-defunct exchange. These developments contribute to the ongoing uncertainty surrounding the events that led to the collapse of FTX.
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