Decentralized exchange (DEX) THORSwap temporarily entered into maintenance mode to prevent potentially illicit funds moving through the platform, the DEX said via X (formerly Twitter) on 6 October.
According to the announcement, THORSwap has recently been concerned about the movement of illicit funds through its platform, and placing the DEX under maintenance mode was its immediate measure to counter the potential threat. The decision was taken after a careful consideration by the THORSwap team, and a consultation with their advisors, legal counsel, and law enforcement.
The platform also noted that THORSwap will remain under maintenance mode until a “more permanent and robust solution” can be implemented to ensure the integrity and security of the platform. Although the move has effectively paused trading operations on THORSwap, its other services such as lending, borrowing, and staking remain fully operational.
THORSwap has often been used by bad actors to move funds across multiple blockchains in order to obfuscate their origin, and the platform has finally decided to acknowledge its ongoing predicament, and implement a permanent solution. Most recently, the platform was used by a hacker connected to the $600 million FTX hack from last year to move funds between blockchains.
Not all decentralized platforms are ready to strengthen their security measures to lessen the regulatory pressure, and are simply choosing to shut down. One such platform is Yield Protocol, which earlier this month announced it will be closing its doors by the end of the year due to the lack of business demand and pressure from regulators.