You may recall our recent story about the THORSwap ledger hack. Well, here’s the next stage.
The native token of THORChain, RUNE, recently experienced a significant overnight rise, defying the odds and capturing the attention of crypto enthusiasts worldwide. But what fueled this resurgence?
A Temporary Halt and an Unexpected Rebound
The rollercoaster ride for RUNE began when THORSwap, one of the leading exchanges for the THORChain ecosystem, temporarily suspended trading last week. The reason behind this move was the alleged passage of illicit funds linked to the FTX exploit that occurred in November 2022.
As trading stopped, crucial services such as lending, borrowing, and staking continued to operate, showcasing the resilience of the THORChain ecosystem.
THORSwap stands out for its utilization of assets deposited in THORChain, a layer-1 blockchain designed for seamless interoperability among various blockchains. These assets serve as liquidity to enable cross-chain swaps, making THORSwap an essential component in the THORChain ecosystem.
The recent resumption of trading was accompanied by an update to THORSwap’s “terms of service.” These updates included the incorporation of “extra guardrails” to prevent illicit funds’ flow and ensure legal compliance.
RUNE’s Rollercoaster Ride
Before its overnight surge, RUNE had experienced a notable downtrend following THORSwap’s trading suspension. The token had plummeted by 27% within the week, dropping from $2.03 to lows of $1.48. However, RUNE’s positive reversal captured the market’s attention and sent it on a remarkable upward trajectory.
Notably, the governance token of THORSwap, THOR, also joined in on the rally, experiencing an 11.5% increase following the trading resumption.
As trading resumed, THORChain’s trading volumes witnessed a remarkable resurgence. Volumes surged to $62 million on Thursday, rebounding from a recent slump below $30 million, according to data from THORChain Explorer.
This uptick in trading activity indicated renewed investor confidence in the ecosystem and the viability of RUNE as a cryptocurrency.
Guarding Against Illicit Activities
Apart from addressing the issue of illicit funds, the THORSwap team took a proactive step to update its terms of service, which now includes blocking users from countries sanctioned by the U.S. The move was made in partnership with an industry leader and was seen as a measure to ensure compliance with regulatory requirements.
While some in the crypto community appreciated the effort to prevent financial crimes, others raised concerns about the potential contradiction with the principles of decentralization.
Matt Ahlborg, a crypto researcher, expressed ethical concern that blanket bans negatively affect “hundreds of millions of innocent people.” A THORChain supporter highlighted that users from sanctioned countries have alternative options to explore, as THORSwap is built by “an American team” and thus has legal compliance obligations.
In a space that constantly grapples with regulatory challenges and strives to strike a balance between decentralization and compliance, the dynamics of such decisions continue to be a topic of debate within the crypto community.
What to do if I lose my crypto in a scam?
In the world of cryptocurrencies, security remains paramount. If you fall victim to a crypto scam, it’s essential to act swiftly.
Immediately change your password and enable two-factor authentication on your crypto account to prevent further unauthorized access. Ensure you notify the relevant authorities and platforms about the scam to help prevent others from falling victim.
If the scam affects your wallet, contact your provider for assistance and guidance. Furthermore, keep yourself informed about the latest scam techniques and stay cautious in your crypto dealings.
Finally, in more complex cases, consider seeking legal advice to explore potential avenues for recovery. Our chargeback experts utilize the latest technology, CipherTrace, to help you track and trace your digital coins. Book a free consultation today, and let’s see how we can assist.