THORChain Faces Backlash Over Handling of Stolen Funds

THORChain, a decentralized exchange (DEX), is under fire for its handling of funds linked to major crypto exploits. The controversy began when Bitget CEO Gracy Chen asked THORChain to stop processing swaps from publicly identified attacker addresses.

The question raised by Chen's comments is whether a permissionless cross-chain protocol should block wallets tied to known hacks from moving funds through its network.

THORChain responded with an X post, stating that their emergency halt policy is designed to protect the protocol during security incidents, not selectively freeze individual funds or block specific swaps.

The network emphasized that pausing the network and stopping one identified wallet are two different actions under its design.