THORChain stated that it will not—or cannot—block addresses associated with last week's $387.5 million hack of the Bitget crypto exchange. Previously, Bitget CEO Gracy Chen had called to "deny service to these addresses."

THORChain Removed Admin Key, but Protocol Was Halted in May

The platform responded that it is decentralized and permissionless—similar to Bitcoin, Ethereum, and BNB Chain—and questioned what responsibility those networks bear when processing stolen funds. THORChain also noted that its admin key has been deactivated and that it has no straightforward way to censor addresses, even if it wanted to. Amid the debate, it was recalled that in May, THORChain operations were immediately suspended when $10.7 million of the protocol’s own funds were exploited.

$1.2 Billion from Bybit Hack Previously Moved Through THORChain

A similar situation has occurred before: approximately $1.2 billion out of $1.46 billion stolen in the Bybit hack was swapped through THORChain, with the platform’s admin key having been deactivated just 11 days prior.

NEAR Intents Blocked $50 Million; Lawyer Outlines Risks of Control

In contrast, NEAR Intents used its SHIELD automated program to block a $50 million swap attempt and even declined a 5% bounty from Bitget. This decision was criticized by advocates of strict decentralization.

Attorney Yuri Brisov (D&A Partners) believes that legal conclusions depend on the degree of decentralization: the strongest protection for DeFi is to demonstrate a lack of control. If a protocol shows it can block addresses, it potentially exposes itself to claims, including KYC/AML expectations. Regarding THORChain’s position that blocking is impossible, Brisov suggests this could serve as a defense.