THORChain Rejects Bitget's Request to Block Hacker Addresses as $6M in ETH Moves to BTC
THORChain declined Bitget's request to block hacker addresses, enabling the movement of $6 million in ETH to BTC. This follows a $387.5 million hack where most stolen funds were converted to ETH. Bitget plans to resume ETH withdrawals on Tuesday.
Key takeaways
- THORChain refused to block addresses tied to the $387.5 million Bitget hack, allowing $6 million in ETH to be swapped for BTC.
- Hackers successfully converted 2,390 ETH into 75.2 BTC despite Bitget's requests to stop the transactions.
- Bitget plans to resume ETH withdrawals on Tuesday and USDt withdrawals on Wednesday as part of its recovery efforts.
- The incident highlights the challenges of balancing decentralization with security in blockchain networks.
- Users are advised to monitor official communications from Bitget for updates on fund recovery and security measures.
THORChain has refused to block addresses linked to the recent $387.5 million hack of crypto exchange Bitget. As a result, hackers successfully swapped about 2,390 ETH (worth approximately $6 million) into 75.2 BTC. Bitget had urged THORChain to stop serving these addresses to prevent further movement of stolen funds.
Why Did THORChain Refuse to Block the Addresses?
THORChain operates as a decentralized exchange (DEX), meaning it does not have centralized control over transactions. This design makes it difficult to block specific addresses, even in cases of theft. THORChain's decision highlights the challenges of balancing decentralization with security in blockchain networks.
What This Means for the Stolen Funds
The $6 million swap to BTC is part of a larger pattern of hackers converting stolen ETH into other assets to obscure the trail. This follows the initial hack where most of the stolen funds were swapped into ETH. Bitget has been working to recover funds, but the decentralized nature of THORChain complicates these efforts.
What's Next for Bitget and Its Users
Bitget has announced plans to resume ETH withdrawals on Tuesday and USDt withdrawals on Wednesday. This is part of the exchange's efforts to restore services following the hack. Users are advised to monitor official communications from Bitget for updates on fund recovery and security measures.
THORChain's refusal to block hacker addresses underscores the broader challenge of managing security in decentralized finance (DeFi). As we've seen in previous hacks, once funds are moved to decentralized platforms, recovery becomes significantly more difficult. This incident echoes the Coldcard hack, where stolen Bitcoin was moved across multiple addresses, making it hard to trace and recover. For users, this serves as a reminder to use exchanges with robust security measures and to stay informed about the risks associated with decentralized platforms.
Frequently asked questions
Why did THORChain refuse to block the hacker addresses?
THORChain operates as a decentralized exchange, which means it does not have centralized control over transactions. This design makes it difficult to block specific addresses, even in cases of theft.
What was the total amount of ETH swapped to BTC?
Approximately 2,390 ETH, worth about $6 million, was swapped into 75.2 BTC.
When will Bitget resume ETH and USDt withdrawals?
Bitget plans to resume ETH withdrawals on Tuesday and USDt withdrawals on Wednesday.
What should Bitget users do next?
Users should monitor official communications from Bitget for updates on fund recovery and security measures.