Bitget CEO Appeals to Thorchain Following Major Hack
This past Saturday, Bitget’s CEO, Gracy Chen, made a public appeal to Thorchain, requesting that the decentralized platform take action against the hackers who recently compromised her exchange, resulting in the theft of a staggering $387.5 million. In her statement, Chen emphasized,
“Decentralization should not serve as a protective layer for those facilitating the transfer of stolen funds.”
This plea comes just two days after Bitget disclosed the hack, initially calculating losses at approximately $351 million, a figure that has since been revised upward as the true extent of the theft became clearer.
The Attack and Its Implications
The attack, apparently conducted via various channels including the notorious Thorchain, has allowed the perpetrators to move the illicit funds through multiple avenues. Thorchain, known for enabling users to swap various cryptocurrency assets across different blockchain networks—like converting Bitcoin to Ethereum—has caught Bitget’s attention due to recent activity involving depositing tens of millions worth of XRP into their vaults, with substantial sums reportedly converted to Bitcoin and dispersed across numerous addresses.
In addition to Thorchain, the hackers are utilizing several other platforms such as Chainflip, Uniswap, 1inch Fusion, Stargate, Across, and Relay. Chen took to social media for a direct appeal, urging Thorchain to refuse service to the identified attacker-controlled addresses, which are publicly tracked.
Industry Reactions and Challenges
“The industry is watching,” she stated, reiterating her position that blockchain technology’s decentralized nature should not excuse the enabling of criminal activity. However, her remarks faced backlash from some users on social media, who questioned why she didn’t appeal to Bitcoin miners instead or compared her demands to blaming a highway for a bank robbery.
Chen’s request comes in light of a similar situation following the Bybit hack earlier, where Thorchain had been pressured to reject transactions linked to stolen funds. Despite FBI efforts to block addresses connected to North Korea during that incident, perceived inaction by Thorchain’s validators allowed operations to continue unhindered, leading to controversy within the community and even a developer resignation.
Thorchain’s Response
While Thorchain has the ability to interrupt operations—demonstrated by their brief pause in response to another exploit that drained millions from their vault—the likelihood of a change in response to Bitget’s situation appears slim, given their previous hesitance to block additional funds. In response to Chen’s appeal, Thorchain commented on social media, expressing sympathy for Bitget but reiterated its commitment to being a decentralized and permissionless platform, much like Bitcoin and Ethereum, questioning what responsibilities established networks should assume in regards to known stolen funds.
Conclusion
As the situation continues to unfold, the implications for decentralized finance protocols and their governance models remain at the forefront of discussion within the industry, as stakeholders grapple with the challenges posed by hacking through platforms that are designed to operate without centralized oversight.
