Decentralized Exchange Thorswap Suspends Activities Due To Hack-Generated Fund Transfers; RUNE Records 8.6% Reduction
There are reports that the decentralized exchange, Thorswap, has temporarily halted its operations. The decision to suspend activities came after the detection of fund transfers that originated from a hacker who targeted FTX. On their social media platform, Thorswap confirmed the situation, stating that the team would never support any unlawful actions.
Thorswap’s Temporary Break in Light of FTX’s Recent Hacking Incident; RUNE’s Value Setback
It became public news when the FTX hacker moved thousands of ether (30,000 ETH to be specific) for the first time following the security breach that occurred in November 2022. It was discovered that these funds were transferred to Thorswap and another decentralized finance application known as Railgun. According to a recent communication from Thorswap on October 6, 2023, the platform was undergoing maintenance checks. The team further stated:
Our decision to put Thorswap into maintenance mode followed a thorough analysis of the situation and a series of discussions with advisors, legal counsels, and law enforcement officers.
The platform’s services will remain unavailable until the administrators find a more lasting and effective solution. The fallout from this incident caused the native crypto asset of Thorchain, RUNE, to fall by 8.6%. However, Thorswap has assured its members that the developers are working tirelessly to restore the application back to normalcy.
Thorswap has confirmed that while Swaps are inactive, other operations such as LP actions, Earn (savers), Borrow (lending), and Staking actions are still ongoing.
The product manager of Consensys, Taylor Monahan, has stated that over the past four months, more than half of the ether to Thorswap router to bitcoin transactions were hacked funds.
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Frequently asked Questions
1. What is FTX Hacker and how is it affecting Thorswap?
FTX Hacker refers to a hacking incident that occurred on the FTX exchange platform. Thorswap, a decentralized exchange built on the Thorchain protocol, is being impacted as a result of this incident.
2. Why has Thorswap halted its operations?
Thorswap has temporarily suspended its operations in response to the FTX Hacker incident. This precautionary measure is aimed at safeguarding user funds and preventing any potential further damage.
3. What is the significance of the 8.6% plummet in RUNE?
RUNE is the native cryptocurrency token of the Thorchain network. The 8.6% plummet in its value is significant as it indicates a decline in investor confidence and market sentiment. This drop could have broader implications for the Thorchain ecosystem.
4. How does the FTX Hacker incident impact Thorswap users?
Thorswap users may face potential risks and inconveniences due to the FTX Hacker incident. The halt in operations means that users cannot currently access or trade their assets on the platform, affecting their ability to manage their investments.
5. What measures are being taken to address the FTX Hacker incident?
Thorswap, in collaboration with the Thorchain development team, is actively investigating the hacking incident to identify the extent of the breach and the vulnerabilities exploited. They are also working on implementing necessary security enhancements to prevent future incidents.
6. Is there any timeline for when Thorswap operations will resume?
At present, there is no definitive timeline for when Thorswap operations will recommence. The team is diligently working to resolve the situation and ensure that the platform can be safely restored, but the exact timeframe may depend on the complexity of the investigation and security improvements.
7. How can Thorswap users protect their assets during this temporary halt?
Thorswap users are advised to remain patient and refrain from taking any actions that could potentially compromise the security of their assets. It is crucial to follow official announcements and updates from Thorswap regarding the incident and ensure the use of secure storage solutions for their cryptocurrencies.