THORChain rejects Bitget request to block hacker as $6 million moves to bitcoin
THORChain has refused a request from the crypto exchange Bitget to block an attacker's wallet following a $388 million security breach. The protocol maintains that its decentralized design prevents it from censoring specific addresses, even when funds are confirmed as stolen.
Why it matters
This highlights the ongoing tension between the principles of decentralization and the need for security and accountability in the cryptocurrency ecosystem.
CoinDesk’s analysis of THORChain’s public transaction records identified 27 swaps marked successful, exchanging about 2,390 ETH for 75.2 BTC. All the bitcoin payouts went to one address. Four additional swaps involving 400 ETH were marked pending in the response reviewed.
The records cover orders submitted between about 03:55 and 06:23 UTC on Monday from an Ethereum wallet identified by blockchain tracker Lookonchain as part of the attacker’s activity. Most were submitted in roughly 100 ETH batches, worth about $265,000 each.
THORChain lets users exchange assets on different blockchains without opening an account at a centralized exchange. An attacker can send in stolen ether and receive bitcoin in another wallet without passing through an exchange that could block the transfer. The swaps remain publicly visible, however, allowing investigators to follow the funds across networks.
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