THORChain Refusal to Block Hackers' Funds Raises Decentralization Questions

A recent $387.5 million hack of Bitget has brought attention to decentralized cross-chain swaps platform THORChain, which is facing potential prosecution over its handling of the stolen funds.

THORChain CEO Gracy Chen demanded that the protocol refuse service to addresses linked to the hack, but the platform responded by saying it's decentralized and permissionless like Bitcoin, Ethereum, and BNB Chain.

This move has been met with controversy, especially given THORChain's own history of being exploited for $10.7 million in May, which led to a protocol halt. The platform also doesn't have an easy way to censor addresses due to its decentralized nature.

D&A Partners' Yuriy Brisov weighed in on the situation, stating that while decentralization can be a strong defense, it can also open up protocols to liability if they show control over assets or interfere with illicit activities.