THORSwap goes into ‘maintenance mode’ to counter illicit funds movement

October 6, 2023 Coin Telegraph

THORSwap acknowledged the ongoing illicit use of the DEX and are acting to find a permanent block to the misuse.

THORSwap, a decentralized exchange (DEX) powered by multichain THORChain, has entered maintenance mode to prevent bad actors from moving illicit funds through the platform.

On Oct. 6, THORSwap transitioned into “maintenance mode” as an immediate measure to counter the potential movement of illicit funds. The decision comes after consultation with advisors, legal counsel, and law enforcement, according to the original announcement.

Fellow THORChads,

A pressing and persistent concern has recently come to light: the potential movement of illicit funds through THORChain and, specifically, THORSwap. Such activities have no place on the THORSwap platform, and THORSwap stands firmly against any and all criminal…
— THORSwap ⚡ #BetterThanCEX (@THORSwap) October 6, 2023

Bad actors often use cross-chain platforms like THORSwap to move funds across multiple blockchains, making them untraceable. THORSwap has acknowledged the ongoing predicament and decided to find a permanent block to the misuse.

“THORSwap will remain in this (maintenance) mode until a more permanent and robust solution can be implemented to ensure the platform’s continued security and integrity.”

While most of the community did not welcome the decision to temporarily pull the plug on the platform, the move was attributed to the DEX’s intent to serve its customers for the long term. The company shared no further information on the ongoing investigations and remediation plans.

THORSwap did not respond to Cointelegraph’s request for comment.

While THORChain works toward strengthening its security measures before restarting its services, decentralized finance (DeFi) lending protocol Yield Protocol announced the decision to permanently shut down.

Yield Protocol’s upcoming shutdown was accredited to the lack of business demand and rising regulatory pressures.

We’ve made the tough decision to wind down the Yield Protocol. The March 2024 fixed rate series will not be launched. Only the December 2023 series remains active for borrowing and lending. All borrowing and lending will end by December 31st. https://t.co/oHnCGgeP13
— Yield Protocol (@yield) October 3, 2023

“All borrowing and lending will end by December 31st,” confirmed Yield Protocol as it announced canceling the March 2024 fixed rate series launch. Unfavorable crypto regulations in the United States, Europe and the United Kingdom became one of the main reasons for Yield Protocol’s untimely shutdown.

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North Korean crypto hacks down 80% but that could change overnight: Chainalysis

September 15, 2023 Coin Telegraph

chainalysis

Crypto bad actors from the DPRK have stolen $340.4 million in 2023, down from $1.7 billion from the prior year, but that's no reason to feel at ease.

Cryptocurrency stolen by North Korea-linked hackers is down a whopping 80% from 2022 — but a blockchain forensics firm says it isn’t necessarily a sign of progress.

As of Sept. 14, 2023, North Korea-linked hackers have stolen a total of $340.4 million worth of cryptocurrency, down from a record $1.65 billion reported funds stolen in 2022.

*Cryptocurrency funds stolen by North Korean-backed groups between 2016-2023. Source: Chainalysis*

“The fact that this year’s numbers are down is not necessarily an indicator of improved security or reduced criminal activity,” Chainalysis said in a Sept. 14 report. “We must remember that 2022 set a dismally high benchmark.”

“In reality, we are only one large hack away from crossing the billion-dollar threshold of stolen funds for 2023.”

Over the past 10 days, North Korea’s Lazarus Group has been linked to two separate hacks — Stake ($40 million) on Sept. 4 and CoinEx ($55 million) on Sept. 12, combining for a loss of over $95 million.

With the latest two hacks, North Korea-linked attacks have made up for about 30% of all crypto funds stolen in hacks this year, noted Chainalysis.

*Funds stolen from North Korean hacking groups vs others between 2016 and 2023. Source: Chainalysis*

North Korea turns to dubious exchanges, mixers

Meanwhile, Chainalysis has found that North Korean hackers have become increasingly reliant on certain Russian-based exchanges to launder illicit funds over the last few years.

The firm said North Korea has been using various Russian-based exchanges since 2021. One of the largest laundering events involved $21.9 million in funds transferred from Harmony’s $100 million bridge hack on June 24, 2022.

United States-sanctioned cryptocurrency mixers Tornado Cash and Blender have also been used by Lazarus Group in the Harmony Bridge hack and other high-profile hacks committed by the group.

We've observed instances of DPRK-linked hackers sending funds to Russian services since 2021. But this year's transfer of $21.9M stolen from Harmony to a high-risk Russian exchange is an escalation of that activity. You can see examples of some of those transactions below. pic.twitter.com/S9cDxlk9Hu
— Chainalysis (@chainalysis) September 14, 2023

The United Nations is making an effort to curtail North Korea’s cybercrime tactics at the international level — as it is understood North Korea is using the stolen funds to support its nuclear missile program.

Meanwhile, the firm hopes increased smart contract audits will make life tougher for these hackers.

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