THORSwap to Halt Illicit Activity Amid FTX Hackers’ Cross-Chain Exploits

• FTX hackers shift tactics to Threshold Network after THORSwap’s temporary suspension.
• THORSwaphas firmly reiterated that it will not tolerate illicit activities on its platform.
• The crypto community awaits THORSwap’s return as defenders of decentralization face cybercriminals.

THORSwap, a prominent cross-chain decentralized exchange (DEX), has taken decisive action to thwart illicit activities by hackers exploiting cross-chain functionalities, according to a recent post by an X account, @EmberCN. This decision comes in response to a wave of cyberattacks on the FTX platform, where hackers leveraged THORChain to facilitate large-scale cross-chain exchanges between Ethereum (ETH) and Bitcoin (BTC).

THORSwap made a public announcement via their official Twitter account, stating their intention to suspend all exchange operations temporarily. This move aims to cut off the exchange path that FTX hackers exploited to launder their ill-gotten gains.

FTX hackers, faced with the suspension of THORSwap, quickly adapted by resorting to the Threshold Network to continue their operations. One hour after THORSwap’s announcement, they exchanged 200 ETH (equivalent to $0.32 million) for 11.6 tBTC using Metamask’s Swap. The tBTC was transferred back to the Bitcoin network via the Threshold Network.

As per the latest reports concerning the activities of FTX hackers, a series of transactions involving their ill-gotten ETH have been detected. A staggering 71,000 ETH, suspected to be part of the hackers’ stash, was converted into BTC through the renowned THORChain cross-chain platform. 

In another move, 2,700 ETH was converted into 165 tBTC and then bridged back to the Bitcoin network via the Threshold Network. Moreover, an additional 1,500 ETH was discreetly funneled through the privacy-centric RAILGUN network. These activities underscore the varied methods and platforms hackers are employing to move their assets within the crypto ecosystem.

Despite these countermeasures, FTX hackers remain in control of a staggering 110,535 ETH, valued at approximately $233 million, within the Ethereum network. THORSwap has been actively addressing this issue, with five of the hacker’s addresses already cleared.

THORSwap, in response to this crisis, has taken a strong stance against any form of criminal activity on its platform. The decision to temporarily transition the platform into maintenance mode was allegedly taken after extensive consultations with advisors, legal experts, and law enforcement agencies. This action aims to swiftly curtail any further illicit activities and ensure the long-term security and integrity of THORSwap.

While no specific details about the resolution plan have been disclosed, THORSwap’s contributors are committed to restoring normal operations as soon as possible. They remain dedicated to providing users with the best cross-chain DEX and developer tools, emphasizing security.