THORSwap Goes Into 'Maintenance Mode' to Combat Illicit Funds Movement

THORSwap, a decentralized exchange (DEX) powered by multichain THORChain, has taken measures to prevent the movement of illicit funds through its platform. The DEX recently entered "maintenance mode" as an immediate solution to address this issue. The decision was made in consultation with advisors, legal counsel, and law enforcement.

Cracking Down on Bad Actors

Bad actors often use cross-chain platforms like THORSwap to move funds across multiple blockchains, making them untraceable. THORSwap is aware of this ongoing problem and is now seeking a permanent solution to block such misuse. The DEX will remain in maintenance mode until enhanced security measures can be implemented to ensure the platform's integrity and continued security.

Although many members of the community did not initially support the decision to temporarily shut down the platform, it was made with the intention of serving customers in the long run. THORSwap has not provided any additional information regarding ongoing investigations and plans for remediation.

Note: THORSwap did not respond to Cointelegraph's request for comment.

Yield Protocol Announces Permanent Shutdown

In the meantime, THORChain's efforts to strengthen security before resuming its services have coincided with the decentralized finance (DeFi) lending protocol Yield Protocol's decision to permanently shut down. The protocol stated that the lack of business demand and increasing regulatory pressures were the main factors contributing to this decision.

The upcoming shutdown of Yield Protocol means that all borrowing and lending will come to an end by December 31st. The protocol has canceled the launch of the March 2024 fixed rate series, leaving only the December 2023 series still active for borrowing and lending. Yield Protocol cited unfavorable crypto regulations in the United States, Europe, and the United Kingdom as the key reasons for its premature closure.