THORChain Rejects Bitget Hack Wallet Freeze Request
Bitget CEO Gracy Chen has criticised THORChain after a September 24 security breach left the exchange facing estimated losses of $387.5 million. The initial estimate of $351.6 million rose as investigators identified unauthorised transfers involving Ethereum, XRP Ledger, Zcash and TRON.
Chen urged THORChain to block wallets linked to the stolen funds. THORChain rejected the request, saying its permissionless, decentralised design does not censor individual addresses. The protocol said emergency halts are intended to protect the network, not freeze specific funds or swaps.
Chen argued that THORChain’s position was inconsistent because the protocol suspended operations for about 39 days after a May 2026 exploit drained roughly $10.7 million from its vaults. THORChain countered that addresses linked to its own exploit were not blacklisted.
The stolen assets continued moving through THORChain. GoPlus Security estimated that about 101.5 BTC, worth roughly $8.5 million, had passed through the protocol, while 27.63 million XRP, valued at about $43 million, was reportedly being converted into bitcoin. One tracked transaction swapped around $6.3 million in ETH for approximately 75.2 BTC. Chen suggested possible links to North Korean cyber activity, but authorities have not confirmed the attribution.
The dispute has intensified debate over DeFi governance, cross-chain monitoring and responsibility for illicit fund flows. THORChain has also been used to move assets linked to the Kelp DAO exploit and the 2025 Bybit hack. RUNE rose as trading volumes increased, but the controversy could bring regulatory scrutiny, reputational damage and higher short-term volatility for THORChain and other cross-chain liquidity assets. Bitget has pledged to cover the full loss through its User Protection Fund.
Bearish
The direct price impact on RUNE is bearish. RUNE initially rose with higher trading volume, suggesting that traders may have treated the incident as a short-term activity catalyst. However, the refusal to block addresses linked to a $387.5 million hack creates ongoing reputational and regulatory risks for THORChain. Continued movement of stolen assets through the protocol could increase selling pressure if traders reduce exposure or liquidity providers withdraw funds.
In the short term, RUNE may experience elevated volatility as traders track further asset transfers, enforcement signals and statements from Bitget or THORChain. A confirmed link to state-sponsored cyber activity or additional use of THORChain by exploiters could worsen sentiment. In the longer term, stronger monitoring, governance changes or compliance controls could improve confidence, but they may also challenge the protocol’s permissionless model. Given the immediate controversy and uncertain regulatory response, downside risks outweigh the temporary boost from higher trading activity.