THORswap, a cross-chain decentralized exchange on the THORchain network, resumed services through its front-end interface after updating its terms of service to restrict users from U.S.-sanctioned countries.
The project aims to disallow any resident or citizen of countries sanctioned by the United States, the United Kingdom, or the European Union from using its front-end platform. It has partnered with an unnamed data provider to keep track of user addresses from such jurisdictions.
“Behind the scenes, we’ve partnered with an industry leader to put some extra guardrails in place to help prevent the flow of illicit funds,” the team announced.
Users from countries that are not eligible to use the platform according to its terms of service include Belarus, Myanmar, Ivory Coast, Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, and Zimbabwe.
THORswap paused interface after FTX hacker's use
The project had suspended its interface on Oct. 6 after a perpetrator of the $470 million FTX hack converted large amounts of ether to bitcoin using the platform with the aim of laundering the assets through what is known as chain-hopping. Despite this suspension, the hacker managed to move funds through other venues on the Thorchain network, as on-chain analytics firm Elliptic noted in a report.
Following the conversion, the bridged bitcoin was passed through Sinbad, a popular mixer service with documented affiliations to North Korea’s Lazarus Group. Although Elliptic stated that the firm believes the entity may actually have a Russian connection instead.
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