THORChain Refuses to Block Stolen Funds Amid Crypto Hack Debate

A recent hack on cryptocurrency exchange Bitget has led to a contentious debate about the role of decentralization in crypto. The breach, which occurred on September 24, 2026, resulted in the theft of $387.5 million.

According to blockchain tracking firms TRM Labs and SlowMist's MistTrack, the hackers first swapped stolen USDT and USDC into ETH and BNB to avoid freezes by issuers such as Tether and Circle. They then moved millions of dollars in ETH and BNB through THORChain, a cross-chain protocol that allows direct swaps between different blockchains without using wrapped tokens.

THORChain's permissionless design does not allow it to censor transactions, the protocol said in response to Bitget CEO Gracy Chen's request to block attacker addresses. This decision has drawn criticism from crypto security experts, who argue that the network should take action when stolen funds are clearly identified.