THORChain-based decentralized exchange THORSwap announced it is “temporarily transitioning” its interface to maintenance mode, amid an increase in potentially illicit funds flowing through the platform.
“A pressing and ongoing concern has recently come to light: the potential movement of illicit funds through THORChain and, specifically, THORSwap,” THORSwap posted on X (formerly Twitter). “Such activities have no place on the THORSwap platform, and THORSwap firmly opposes all criminal actions.”
This move follows consultations with legal experts, advisors and law enforcement agencies, and the platform will remain in maintenance mode until “a more permanent and robust solution can be implemented to ensure the continued security and integrity of the platform,” according to THORSwap.
FTX hacker fund moves
The person or entity behind suspicious withdrawals from the collapsed crypto exchange FTX – commonly referred to as the ‘FTX hacker’ – transferred 22,500 ETH ($38 million) in the past week, according to to on-chain analysts Lookonchain.
The transfers involve exchanging ether for bitcoin via THORChain and Railgun. The FTX hacker has over 163,000 ETH ($275 million) in various wallets.
Taylor Monahan, product manager at Consensys, claimed Monday that hackers and money launderers in Russia and North Korea are using THORChain for their activities, adding that “in the past four months, more than 50% of ether-to-THORSwap router to bitcoin transactions have been stolen money.”
Transaction volume on THORChain increased significantly this month, reaching a record $355 million on October 5, according to THORChain Explorer.
Exchange history volume. Image: THORChain Explorer.
The THORSwap team said it had no additional details to share at this time, but assured the community that they were doing everything possible to resume operations quickly and that further updates would follow.