THORSwap, a decentralized exchange (DEX) powered by multichain THORChain, has taken a proactive step by entering maintenance mode to prevent potential illicit fund movements through its platform. This decision was made after consulting with advisors, legal counsel, and law enforcement.
Cross-chain platforms like THORSwap have been exploited by bad actors to transfer funds across multiple blockchains, making these transactions difficult to trace. To address this issue, THORSwap has temporarily entered maintenance mode to find a lasting solution to prevent misuse of its platform.
While some members of the community may not have welcomed this decision, THORSwap aims to ensure the long-term security and integrity of its platform. The company did not provide specific details regarding ongoing investigations and remediation plans.
In a related development, the decentralized finance (DeFi) lending protocol Yield Protocol has announced its decision to permanently shut down. This decision is attributed to a lack of business demand and increasing regulatory pressures in the crypto industry, particularly in the United States, Europe, and the United Kingdom. All borrowing and lending activities on the platform will cease by December 31st, 2023.
These actions by THORSwap and Yield Protocol reflect the evolving regulatory landscape in the cryptocurrency and DeFi space, with some projects choosing to wind down operations to mitigate potential legal risks.