ThorChain-based decentralised exchange THORSwap has temporarily transitioned into maintenance mode, citing a growing influx of potentially illicit funds traversing their platform.
Over the course of the last four months, more than half of the funds converted from Ethereum (ETH) to BTC through ThorSwap routers have originated from stolen sources.
This decision to enter maintenance mode has been taken after consultation with legal experts, advisors, and law enforcement agencies.
THORSwap intends to remain in maintenance mode until they can devise a more permanent and robust solution to safeguard the platform’s ongoing security and integrity.
Taylor Monahan, a product manager at Consensys, highlighted on Monday that hackers and money launderers, notably from Russia and North Korea, have been utilising THORChain for their operations.
Coincidental to the rise in illicit activities, ThorChain has also witnessed a notable surge in transaction volume, reaching a historic high of US$355 million on October 5.
The cumulative transaction volume over the past five days has surpassed the US$1 billion mark.