THORChain's Refusal to Block Hack-Linked Addresses Sparks DeFi Debate
THORChain has found itself at the center of a heated debate in the DeFi space after Bitget requested it block addresses tied to suspected North Korean hackers who exploited its exchange for $387.5 million last week.
Bitget's CEO, Gracy Chen, urged THORChain to refuse service to the flagged recipient addresses, but the decentralized cross-chain swaps protocol rejected the idea as inconsistent with permissionless operation.
The controversy has reignited a broader debate about whether decentralized protocols should block funds tied to hacks and what liability risks arise when they can or cannot selectively interfere.
Yuriy Brisov of D&A Partners pointed out that any ability to block or control transactions can weaken a protocol's 'we're decentralized' defense, highlighting the potential consequences for THORChain if it were to intervene in this case.