THORChain rejects call to block stolen funds over decentralization principles

THORChain, a decentralized exchange enabling cross-chain swaps without intermediaries, recently found itself at the center of a heated debate in crypto. After a $387.5 million attack on Bitget on September 24, 2026, some of the stolen funds were routed through THORChain into Bitcoin. Bitget’s CEO, Gracy Chen, publicly requested that THORChain block the attacker’s addresses, but the protocol declined. Chad Barraford, THORChain’s technical lead, explained that the protocol lacks any mechanism to block wallets or transactions, as doing so would require centralization.

Barraford emphasized that THORChain operates on decentralized principles, and even if the community wanted to implement such controls, reaching validator consensus would take days or weeks, long after any transaction has settled. He drew a distinction between protecting the protocol and policing users, noting that THORChain’s validators paused the network in May 2026 for 39 days after a flaw led to a $10.7 million exploit. However, this was a security measure, not a selective freeze.

Barraford questioned why THORChain was singled out, as other decentralized exchanges also handled Bitget-linked flows. He argued that responsibility ultimately lies with centralized exchanges, which facilitate the conversion of stolen funds into fiat and could intervene but often do not. His stance underscores THORChain’s commitment to decentralization, even in the face of high-stakes security challenges.