THORChain has declined a request from Bitget to block addresses linked to a hacker as approximately $6 million in stolen cryptocurrency was converted into Bitcoin, according to reporting by CoinDesk.
The decentralized finance protocol continued processing transactions even while Bitget publicly urged it to refuse service to addresses tied to a $387.5 million theft involving roughly 2,390 ETH swapped into about 75.2 BTC across 27 separate transactions.
Key Facts
- 27 successful swaps converted approximately 2,390 ETH into 75.2 BTC
- Bitget urged THORChain to block addresses tied to the $387.5 million theft
- THORChain rejected Bitget’s request to block the hacker-associated addresses
- CoinDesk tracked roughly $6 million moving to Bitcoin despite the block request
Who Is Affected?
Bitget, a centralized cryptocurrency exchange, sought intervention from THORChain after identifying addresses connected to a major theft of approximately $387.5 million. The exchange reportedly asked the decentralized network to stop serving those addresses, hoping to prevent further movement of stolen funds.
THORChain, a cross-chain liquidity protocol, operates without centralized control over individual transactions. As a decentralized platform, it processes swaps between different blockchains based on automated smart contracts rather than discretionary approvals from any single entity.
Users and exchanges monitoring the movement of stolen assets are affected by the outcome. A successful freeze or block might have prevented the conversion of roughly $6 million worth of Ethereum into Bitcoin, but THORChain’s design prioritizes decentralization over intermediary oversight.
How Did We Get Here?
The situation arose when CoinDesk reported that 27 individual swaps successfully converted approximately 2,390 ETH into 75.2 BTC. These transactions occurred as Bitget simultaneously urged THORChain to restrict access for addresses believed to be connected to the $387.5 million theft.
THORChain’s rejection of the block request reflects its core principle of permissionless operation. Unlike centralized exchanges that can freeze accounts or halt transactions, decentralized protocols typically lack built-in mechanisms for blocking specific addresses unless coded into their governance systems.
This dynamic highlights growing tensions between centralized platforms seeking to recover stolen funds and decentralized networks that do not recognize external demands for transaction censorship. The ongoing flow of roughly $6 million through the network underscores how difficult it can be to contain large-scale crypto thefts once assets enter decentralized infrastructure.
What Happens Next?
It remains unclear whether additional measures will be taken by Bitget or other entities to trace and recover the remaining stolen funds. Further coordination between centralized and decentralized actors may determine how much of the $387.5 million can ultimately be contained or restored.
What We Know — and What We Don’t
Verified by the source:
- THORChain rejected Bitget’s request to block addresses tied to the hacker
- Approximately $6 million moved to Bitcoin via 27 successful swaps
- Bitget identified addresses connected to a $387.5 million theft
- Roughly 2,390 ETH was swapped into 75.2 BTC
Still unconfirmed:
- The identity or group behind the $387.5 million theft
- Whether THORChain governance could override its permissionless design
- If law enforcement or other protocols will intervene further
- The final destination or laundering path of the converted Bitcoin
Why It Matters
This incident illustrates the fundamental tension between centralized oversight and decentralized autonomy in modern cryptocurrency ecosystems. While exchanges like Bitget can identify suspicious activity, decentralized networks like THORChain often lack mechanisms for enforcing blocks without compromising their core principles of openness and user sovereignty.
What To Watch
Further developments may depend on whether Bitget or other stakeholders pursue technical or legal avenues to recover funds, and whether THORChain’s community considers governance changes in response to similar future incidents.