ThorSwap crypto exchange suspended its crypto trading & other every crypto related services to prohibit the FTX hacker’s trading activities. This incident raised several questions about the decentralised nature of Defi crypto exchanges.
FTX was a popular crypto exchange but went bankrupt in Nov of last year. When the exchange collapsed badly then in the same time frame a hacker breached the platform’s security protocols easily & stole nearly $500 million worth of crypto assets. In the last few weeks, the hacker successfully swapped the stolen funds for 180,000 ETH.
On 6 Oct 2023, Hacker swapped 76,636 ETH into tBTC through Threshold Network. To prohibit the explorer’s trade activity & freeze funds, the decentralized Finance (Defi) protocol ThorSwap suspended the services & went on maintenance.
So far no update has come from the ThorSwap team but it is expected that they will give some update after the successful surgery of the whole matter with some good news.
Following this report, the trade price of the Thor token plunged rapidly on the same day but later started recovering. The current trade price is 19% down over the last 7 days of trade price.
However, the ThorSwap team took the action to freeze funds, so that former FTX customers could get their funds back following the bankruptcy proceedings in the future but this action raised a very big question about the real nature of the Defi sector.
The majority of the Defi protocols claim to be 100% decentralized and here ThorSwap is one of them but the latest action by its back-end team showed that ThorSwap is not decentralized & also other platforms are running with the same nature, no matter what their corresponding project team claim to be.
A prominent Bitcoin proponent Max Kieser slammed all these Defi crypto protocols and said that decentralised finance is not decentralised.