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THORSwap pauses operations after FTX hacker transfers funds

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The move aims to curb illicit activities and safeguard the platform’s security, while lending, borrowing, and staking remain unaffected.
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  • A developer from THORSwap emphasized the team’s strong stance against any criminal actions.
  • Recently, an unidentified hacker orchestrated the movement of over 15,000 Ether through various platforms.

In response to a series of suspicious transactions, THORSwap exchange announced that it would enter “maintenance” mode. As a result, trading activities were temporarily halted.

The suspicious transactions included funds originating from the notorious “FTX Exploiter” wallet, which had drained significant funds from Sam Bankman-Fried’s FTX [FTT] after its bankruptcy in the previous year.

As an added twist, blockchain sleuth Lookonchain reported that the exploiter has started converting Ether [ETH] into Threshold Network’s tBTC tokens, a bridged version of Bitcoin [BTC].

A developer from THORSwap emphasized the team’s strong stance against any criminal actions.

Following a thorough evaluation of the situation and consultations with advisors, legal experts, and law enforcement, THORSwap developers made the decision to transition the platform into maintenance mode. This move aimed to swiftly curb any further potentially illicit activities.

THORSwap decided to maintain this mode until they could implement a more permanent and robust solution. They intend to ensure the ongoing security and integrity of the platform.

While trading operations were paused, other services like lending, borrowing, and staking continued to operate without interruption.

The details

THORSwap operates on THORChain, a network enabling users to freely trade tokens across different blockchains. The incident that led to this decision had its origins in November 2022.

Shortly after FTX and its related entities filed for bankruptcy, an unknown entity managed to siphon off as much as $600 million from various wallets.

Recently, this unidentified hacker orchestrated the movement of over 15,000 Ether through various platforms, including THORSwap. The sudden activity of the funds coincided with the impending criminal trial of Sam Bankman-Fried in a federal court in New York.

This has added another layer of intrigue to the ongoing mystery surrounding the collapse of the FTX exchange last year.

The pause in trading operations serves as a necessary step to address the security concerns arising from these suspicious transactions. Users of THORSwap can rest assured that the platform’s lending, borrowing, and staking services continue to function as usual.

THORSwap’s decision to consult with legal experts and law enforcement authorities underscores its dedication to addressing the situation comprehensively.

The move into maintenance mode is expected to be temporary, with the exchange actively working on a more permanent and robust solution.

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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