THORSwap Enters Maintenance Mode to Thwart Illicit Transactions; Yield Protocol to Shut Down
Summary:
THORSwap, a decentralized exchange backed by THORChain, is temporarily suspending operations and shifting to maintenance mode to prevent potential misconduct involving illicit fund transfers. This decision was made after consultation with legal and law enforcement professionals, with a plan to develop a more robust response, strengthening the platform's security. In correlated news, DeFi lending model Yield Protocol announced permanent cessation of its operations due to lacking business demand and rising regulatory pressures.
THORSwap, a decentralized exchange (DEX) underpinned by multichain THORChain, is initiating a system-wide maintenance to thwart the possible manipulation by wrongdoers intending to relocate unauthorized funds. As of October 6th, the THORSwap platform has shifted into a "maintenance mode" to quickly combat the potential for unscrupulous fund transfers. This move was prompted after engaging with consultants, legal representatives, and law enforcement agencies, as per an initial statement.
Dubious entities frequently utilize cross-chain platforms such as THORSwap to transfer funds between different blockchains, making the money trail obscure. Acknowledging the imminent issue, THORSwap has set off to establish an enduring solution to curb misuse. The DEX mentioned, "THORSwap will continue operating in this mode (maintenance) until a comprehensive and substantial solution is deployed to maintain the platform's security and sustainability."
Although the decision to pause the platform's operations was not broadly accepted by the network, the choice highlighted the DEX's commitment to its customer-centric business approach. THORSwap refrained from providing additional details on the ongoing investigations and mitigation strategies, and did not return a commentary request from Cointelegraph.
Related to this, Binance is closing BUSD lending by October 25.
As THORChain is enhancing its security protocols before recommencing its operations, decentralized finance (DeFi) lending facility Yield Protocol publicized a resolution to permanently close down. Citing diminished business interest and increasing regulatory burdens as the reasons, Yield Protocol will cease all operations by December 31st, as confirmed by a recent announcement.
Related news, Cuba's Bitcoin Revolution: A firsthand account.
Published At
10/6/2023 8:39:00 AM
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