THORChain's "Decentralization" Faces Scrutiny After Bitget Asks It to Block Hackers

Bitget CEO Gracy Chen @GracyBitget asked THORChain to refuse service to publicly identified attacker addresses, saying decentralization should not be a shield for facilitating stolen funds. THORChain emphasized that its network is permissionless. In May 2026, an attack on one of THORChain’s vaults caused approximately $10.7 million in losses. Automatic safeguards and coordinated action by node operators subsequently halted the network.

Co-founder Chad Barraford later discussed ideas for anomaly detection and emergency pauses on a podcast, outlining security checks and asset migration procedures before trading could resume. While halting a network is not the same as freezing specific addresses, the dispute raises a question: Under what circumstances should a decentralized protocol intervene when stolen funds originate from an external platform?