THORChain Co-Founder Explains Challenges in Blocking Bitget Hacker Funds

THORChain co-founder Chad Barraford acknowledged that the decentralized protocol could have taken steps to disrupt funds linked to the Bitget hack, but he emphasized the challenges involved. During an Unchained interview with Laura Shin, Barraford explained that coordinating validators to act quickly is difficult, as the process can take days, sometimes even weeks, while hackers can swiftly move stolen funds to new addresses.

Barraford highlighted that THORChain lacks a mechanism to immediately censor transactions or wallets. Even if such a system existed, he argued, validators would still face coordination hurdles to prevent funds from being moved elsewhere. The protocol requires a two-thirds consensus for certain actions, a process that typically takes about three days but can extend to two weeks. Faster responses would demand a redesign, giving a smaller group more control.

Despite these limitations, Shin pointed out existing functions that could have been used to halt trading or return stolen funds. She cited THORChain’s MakePause function, which allows a single node to temporarily halt chains for roughly an hour, potentially giving validators time to discuss a response. Barraford clarified that while THORChain can intervene, doing so affects legitimate users while validators coordinate a more permanent solution.

The discussion also touched on previous incidents, such as the ThorFi and DAO hacks, where interventions were attempted. Barraford admitted that validator consensus could ultimately block laundering if a majority agreed, but he stressed that decentralization makes quick responses inherently difficult. He concluded that while THORChain’s governance allows for changes, coordinating them swiftly enough to counter active threats remains a significant challenge.