Crypto News- The temporary halt in trading on THORSwap was initiated last Friday due to allegations of illicit funds being funneled through the exchange in connection to the FTX exploit that occurred in November 2022. Despite this trading suspension, critical services like lending, borrowing, and staking operations continued to function seamlessly.
THORChain Surges 8% After DeFi Exchange Resumes Trading Post-Pause
THORSwap operates by utilizing assets deposited on THORChain, a layer-1 blockchain engineered to enhance interoperability between various blockchain networks, thereby providing the liquidity required for cross-chain swaps. Following the trading suspension, THORSwap reopened its trading operations, incorporating crucial updates to its “terms of service” to establish added security measures aimed at preventing the movement of illicit funds and ensuring compliance with legal standards.
However, it’s noteworthy that the price of RUNE had been in a downward trajectory throughout the period of THORSwap’s trading suspension, declining by a significant 27% over the week, sliding from $2.03 to a low point of $1.48. This downward trend was only reversed with the recent positive surge, which amounted to an 8% increase.
The governance token of THORSwap, THOR, also benefited from this development, experiencing an 11.5% rise in its value following the announcement.
Trading volumes on THORChain demonstrated a significant increase on Thursday, surging to $62 million, after a preceding period of dwindling volumes that had fallen below $30 million. Data from the THORChain Explorer revealed this upward trend. In addition to addressing the issue of illicit funds, the THORSwap team adjusted its terms of service to restrict access for users from countries that are subject to sanctions imposed by the United States.
The project’s team disclosed their partnership with an industry leader to integrate these extra layers of security.
Interestingly, the introduction of these new regulations raised concerns among certain users who argued that they contradicted the principles of decentralization. Crypto researcher Matt Ahlborg voiced concerns about blanket bans, emphasizing their potentially adverse impact on “hundreds of millions of innocent people.”
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