Thorswap partner frozen 10 BTC?

[Mark00101]

Hii

One user sent exactly 10 BTC through THORSwap. The route got routed through NEAR Intents (their "solver" provider). Funds hit an MPC deposit address controlled by NEAR → instantly flagged as "compliance review" → frozen for days. The guy went nuclear on X, but ZachXBT dropped the receipts: the "victim" was the admin of Chinese darknet market FreeCity (drugs, weapons, stolen data, DPRK laundering). Still, the freeze happened.

So what actually still works these days when it comes to AML? How should you swap now? Is ThorSwap no longer safe at all, or was it just one random case?

https://x.com/zachxbt/status/2022500720143216758

[OmegaStarScream]

It can't be one random case. They either have a built-in feature to block suspicious transaction (after screening them) or they don't.

Now looking at this[1]. It's possible that the issue might be related to this new NEAR INTENT integration, as opposed to Thorchain (the protocol itself)?

Cause if I remember correctly, when Bybit got hacked, funds did go through Thorchain and I don't believe there were ever blocked. Sure, you can do things on the frontend side (like Chainflip did if I'm not mistaken), but not on the protocol level. I could be wrong though, cause I'm not following the developement upclose.
 
[1] https://www.binance.com/fr-AF/square/post/26933087279161

[NotATether]

I list appropriate methods for KYC-free swaps.

Don't use it for anything illegal, of course. It goes without saying.

[b1ack]

Let me clarify the protocols involved:

THORChain: A protocol that does NOT have screening or AML checks.

NEAR Protocol (NEAR Intents): A different protocol that DOES perform screening and AML checks, and requests KYC when transactions are flagged.

The problem with SwapKit.dev:

Both protocols are promoted through SwapKit.dev. Most developers and swap/API providers don't realize that integrating SwapKit.dev for their exchange services is like tying a noose around their own neck.

Why? Because SwapKit routes through multiple protocols with different policies. You might think you're using a no-KYC service, but your transaction gets routed through NEAR Intents, which has AML screening.

What the user can do: • Request a refund (if the service cooperates) • Say goodbye to his funds forever (if they don't)

Bottom line: This is why using third-party APIs and aggregators is dangerous. You don't control the routing, and you don't know which protocol will actually process your swap.

Thorswap is just one of the exchange site based on swapkit.dev.

[dkbit98]

Still, the freeze happened.

That should finally end all the talk how Thorswap is decentralized service, it's not.
When I researched Thorswap I found out they have several different interfaces that support different coins and different wallets.
If they can actually freeze coins with addition of other protocols than they could be forced to comply for all transactions in future 

[noorman0]

-snip-
Is ThorSwap no longer safe at all, or was it just one random case?

Let's just hope the 10BTC incident won't cause Thorswap to slowly die.

I don't know if they'll still care about their decentralized branding if they're happy to add coins or tokens that are centralized by default or collaborate with solvers that are actually tied to legal entities. I doubt they'll remove some of these such exchange routes on their platform, atleast it's too late to not to raise some eyebrows among authorities.

[Yamane_Keto]

This is a good lesson on how to interact with the Thorchain protocol. Services claim to be integrated with the Thorchain protocol and place conditions or restrictions on transactions. Viewing the transactions on https://viewblock.io/thorchain may give a better idea before sending larger amounts.

[BitMaxz]

I can't seem to get how the funds end up in the NEAR protocol. I can't seems to find the NEAR option when swapping on ThorChain.
Or was it sent to CEX and then forwarded to the Near protocol for AML checks?

Is Thorchain not a direct swap from crypto to crypto? If it is indeed a direct swap with no 3rd party, then how did it end up in the NEAR protocol?

[RGBTC]

I can't seem to get how the funds end up in the NEAR protocol. I can't seems to find the NEAR option when swapping on ThorChain.
Or was it sent to CEX and then forwarded to the Near protocol for AML checks?

Is Thorchain not a direct swap from crypto to crypto? If it is indeed a direct swap with no 3rd party, then how did it end up in the NEAR protocol?

If the user swaps to NEAR ecosystem tokens, Thorswap will assign a relevant solver route based on their parameters. Incidentally, Near Intents⁽¹⁾ implements 3 AML checkers, 2 of which are external infrastructure⁽²⁾.

1) https://near-intents.org
2) https://docs.near-intents.org/near-intents/risk-and-compliance

[b1ack]

I can't seem to get how the funds end up in the NEAR protocol. I can't seems to find the NEAR option when swapping on ThorChain.
Or was it sent to CEX and then forwarded to the Near protocol for AML checks?

Is Thorchain not a direct swap from crypto to crypto? If it is indeed a direct swap with no 3rd party, then how did it end up in the NEAR protocol?

Thorchain is the protocol while thorswap is an exchange made on swapkit.dev

[BitMaxz]

Thorchain is the protocol while thorswap is an exchange made on swapkit.dev

Now I see the difference. I was on thornchain swap website which mainly uses Thorchain. It made me confused until I found the app.thorswap.finance where the NEAR exists.
Now I understand why the guy who sent 10 BTC ended up frozen because he uses ThorSwap integrated with NEAR Intent.
If it was the ThorChain, the funds don't need to be checked for AML, and it is also one of the tools that was used for how the Bybit hacker got away with the funds.

[FinneysTrueVision]

Now I see the difference. I was on thornchain swap website which mainly uses Thorchain. It made me confused until I found the app.thorswap.finance where the NEAR exists.
Now I understand why the guy who sent 10 BTC ended up frozen because he uses ThorSwap integrated with NEAR Intent.
If it was the ThorChain, the funds don't need to be checked for AML, and it is also one of the tools that was used for how the Bybit hacker got away with the funds.

A lot of people confuse them because of the name. Thorswap started out as a frontend for THORchain, but now they have added other protocols and became a cross-chain swap aggregator. It’s kind of misleading, but they don’t want to change names because they are so recognizable and established.

I don’t really like that NEAR Intents, which is supposed to be decentralized, can freeze user funds. They aren’t the only ones that have AML screening, but the other ones will usually reject your trade and return your deposit to a refund address.

[honglu69]

Near intent for most part is just a DEX,  no KYC, no AML.  but it does impose some degree of KYC/AML ish style control.  Thorswap uses  Near intent or thorchain.

Thorchain only (no thorswap, barebone) has zero KYC/AML. 

Komodo Dex on smaller trading through Cheetahdex/Firodex/Gleecdex has zero KYC now.  Gleec Wallet may impose similar style of thorswap control in the future.

DEX vs DEX is different, some nuances there for users.

[OmegaStarScream]

-snip-

And I'm guessing there is no way to use thorswap without being forced to use NEAR intents (or at least allows you to select the routing)? Are you aware of any frontends that uses Thorchain (only) while supporting pretty much all the assets like Thorswap?

[cLoazyL]

-snip-

And I'm guessing there is no way to use thorswap without being forced to use NEAR intents (or at least allows you to select the routing)? Are you aware of any frontends that uses Thorchain (only) while supporting pretty much all the assets like Thorswap?

Using https://app.thorswap.finance/swap - You can specify the routing your coins will go through, allowing you to exclude NEAR and stick with pure thorswap.