Back in Action

THORSwap, the decentralized exchange (DEX) that’s had more ups and downs than a game of whack-a-mole, has officially resumed operations after a brief stint in maintenance mode. On October 12, the platform announced its return, encouraging users to dive back into swapping over 5,500 assets across ten blockchains from their beloved self-custody wallets.

Why the Pause?

But why the sudden lockdown? It turns out THORSwap detected some rather unsavory illicit funds attempting to make their way through its digital doors. On October 6, a quick halt was put in place as the folks behind THORSwap scrambled to address the potential misuse of its platform. Call it a crypto version of catching a thief in the act—if only they could have yelled, “Thou shalt not pass!”

New Rules, Who Dis?

In the wake of the chaos, THORSwap has introduced some shiny new terms of service that have the community buzzing (and not in a good way). Now users are required to comply with applicable laws, including Anti-Money Laundering provisions, and can’t dabble in any activities that go against sanctions programs. “We reserve the right to kick you out of our clubhouse,” they said, or something like that.

Community Outrage

The reaction from users was nothing short of electric—jabs flying left and right. Questions like, “Is there any reason to use your services instead of a regular CEX?” and “Did you just copy-paste their terms?” echoed through the digital airwaves. Erik Voorhees, founder of ShapeShift, chimed in, clarifying that while THORSwap is a centralized entity making calls about its interface, THORChain, the network it’s built upon, is decentralized by nature. It’s like the difference between pizza made at home and that questionable slice from down the street.

New Partnerships and Future Plans

Alongside the terms tame, THORSwap mentioned partnering with an undisclosed “industry leader” to put some extra safety nets in place to stem the flow of illicit funds. Think of it like adding a bouncer to the club—the goal is to keep the undesirables outside. While the finer details remain under wraps (because let’s face it, nobody likes a snitch), the exchange aims to perfect its address screening parameters.

The Bigger Picture

Interestingly, THORSwap’s comeback happened concurrently with reports that the infamous hacker of the now-defunct FTX exchange had begun moving stolen funds after nearly a year of dormancy. The hacker chose THORSwap to convert a whopping 72,500 Ether into Bitcoin before funneling it to sanctioned mixers. Talk about a slippery slope!

A spokesperson for THORSwap assured that these funds are easily traceable post-swap, but once they go through that notorious mixer, all bets are off. So be careful where you pour your crypto cocktail!