THORswap, a cross-chain decentralized exchange on the THORchain network, resumed services via its front-end interface after updating the terms of service to restrict users from US-sanctioned countries.
The project aims to ban any resident or citizen of countries sanctioned by the United States, the United Kingdom or the European Union from using the front-end platform. It works with an undisclosed data provider to track user addresses from such jurisdictions.
“Behind the scenes, we’ve been working with an industry leader to put some additional guardrails in place to help prevent the flow of illicit funds,” the team says announced.
Users from countries that are not eligible to use the platform under the terms of service include Belarus, Myanmar, Ivory Coast, Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria and Zimbabwe.
THORswap paused the interface after being used by an FTX hacker
The project had its interface suspended on October 6 after a perpetrator of the $470 million FTX hack converted large amounts of ether into bitcoin using the platform with the aim of laundering the assets through what is known as chain-hopping. Despite this suspension, the hacker managed to move funds through other locations on the Thorchain network, as analytics firm Elliptic noted in a report.
After the conversion, the bridged bitcoin was passed through Sinbad, a popular mixing service with documented ties to North Korea’s Lazarus Group. Although Elliptic stated that the company believes the entity may have a Russian connection instead.