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Bitget CEO Xu and other industry leaders criticize THORChain's decision to allow stolen funds to be laundered, arguing that decentralization should not shield illicit activity, while THORChain defends its permissionless protocol design.
As the surge in on-chain activity happened after the recent Bitget security incident, wherein the stolen funds were reportedly laundered via THORChain to swap and transfer assets between blockchains.
Our attacker addresses are publicly listed and actively tracked. We are formally asking @THORChain to refuse service to these addresses. Decentralization is a design principle, not a shield for facilitating known stolen funds. The industry is watching.
THORChain’s response was based on the distinction between a permissionless blockchain protocol and a centralized exchange. For context, on a centralized exchange such as an ordinary crypto trading platform, the company can maintain a blacklist. THORChain is decentralized and permissionless like Bitcoin, Ethereum, and BNB Chain. What responsibility should Bitcoin, Ethereum, and BNB Chain bear when handling known stolen funds?
Xu further explained that Bitcoin’s network does not have a group of people sitting together and deciding whether a Bitcoin transaction should be signed. Instead, it usesThe assets that are held within THORChain’s cross-chain infrastructure are controlled through a group of participating validators/nodes.
Therefore, a transaction involving those assets requires a threshold of those participants to provide signatures. Despite these criticisms, THORChain’s native token RUNE stood strong, trading at $0.7908 at press time after a hike of 15.8% in the past 24 hours. BitGet’s CEO, OKX founder, and many in the crypto industry are slamming THORChain’s decentralized nature. AMBCrypto was founded in 2018 with a mission to simplify and bring the latest blockchain and cryptocurrency news to our readers.
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