Jamal Al-Farouq Thorswap, a decentralized exchange, has temporarily ceased its operations in response to the transfer of assets linked to the hacker responsible for the FTX breach. The team at Thorswap took to public forums to express their unequivocal opposition to any criminal activities.
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Thorswap Goes into Maintenance in Wake of FTX Breach Fallout; RUNE Suffers Price Erosion
After the malefactor behind the FTX breach shifted a significant amount of Ether (30,000 ETH) for the first time since the security incident in November 2022, blockchain analysts noted that the funds were directed towards Thorswap and another decentralized finance (DeFi) application, Railgun. On October 6, 2023, Thorswap communicated to its user base that the platform was under maintenance. The statement from the exchange’s team read:
“Following an in-depth assessment of the circumstances, and after seeking advice from consultants, legal experts, and law enforcement agencies, we opted to temporarily put the Thorswap interface into maintenance mode.”
The exchange will remain inactive until a more sustainable and secure solution can be implemented. In reaction to this development, Thorchain’s native cryptocurrency, RUNE, witnessed an 8.6% reduction in its market value. Thorswap’s development team is reportedly working diligently to restore the platform to full operational status.
The exchange added further clarification, stating, “Trading functionalities are currently suspended. However, Liquidity Providing actions, Earn (savings), Borrow (lending), and Staking actions remain fully functional.”
Consensys Product Manager Taylor Monahan disclosed on social media platform X (previously known as Twitter) that over the course of the last four months, “a majority—exceeding 50%—of Ether to Thorswap router to Bitcoin transactions were involving pilfered funds.”
We invite you to share your views and perspectives on the temporary cessation of Thorswap’s operations in the comments section below.
Frequently Asked Questions (FAQs) about Thorswap Suspends Operations
What led to the suspension of Thorswap’s operations?
Thorswap temporarily ceased its operations after it was observed that assets linked to the FTX hacker were transferred to the decentralized exchange. The team expressed their unequivocal opposition to any form of criminal activity and have taken the platform offline for maintenance.
What assets were transferred to Thorswap that led to its suspension?
The hacker behind the FTX breach transferred a significant amount of Ether (30,000 ETH) for the first time since the November 2022 security incident. These funds were noted to have been directed towards Thorswap, prompting the suspension.
What has been the impact on Thorchain’s native cryptocurrency, RUNE?
Following the news of Thorswap’s suspension, Thorchain’s native cryptocurrency, RUNE, experienced an 8.6% decline in its market value.
What steps is Thorswap taking to address the situation?
Thorswap has entered into a maintenance mode, following consultations with advisors, legal experts, and law enforcement agencies. The platform will remain inactive until a more robust and secure solution can be implemented. The team is reportedly working diligently to bring the platform back to operational status.
Are all functionalities of Thorswap paused?
While trading functionalities are currently suspended, other features like Liquidity Providing actions, Earn (savings), Borrow (lending), and Staking actions remain fully functional according to Thorswap’s latest update.
What did Consensys Product Manager Taylor Monahan reveal about the situation?
Taylor Monahan, a Consensys Product Manager, disclosed that over the past four months, more than 50% of Ether to Thorswap router to Bitcoin transactions involved stolen funds. This information was shared on a social media platform known as X (formerly Twitter).
More about Thorswap Suspends Operations
- Thorswap Official Statement on Suspension
- FTX Security Breach Details
- Analysis of RUNE Price Drop
- Taylor Monahan’s Disclosure on Social Media Platform X
- Legal Implications of Thorswap Suspension
- Decentralized Finance (DeFi) Security Concerns
- Railgun’s Involvement in the FTX Hack
7 comments
I’ve always been skeptical about DeFi. Seems like we’re still in the Wild West phase of crypto, too much risk for me.
Thorswap consulting with law enforcement and legal counsel is a smart move. This isn’t just a tech problem, it’s a legal one too.
This raises some real questions about security in the DeFi space. If a platform like Thorswap can get compromised, it makes you wonder whats next.
Taylor Monahan’s disclosure is shocking! over 50% of transactions involving stolen funds? This could have legal ramifications y’know.
30k ETH is no joke. glad they are taking measures to solve it but how did they even allow it to happen in the first place?
Wow, didnt see this coming. Thorswap down and RUNE taking a hit too. Any idea when they’ll be back? Hope its not the end of the road.
RUNE dropping 8.6% on this news is big, but not surprising. when there’s instability, assets lose value. just the way it is.