THORChain co-founder Chad Barraford discussed the protocol's ability to respond to hackers following the $387.5 million Bitget exchange exploit. He noted that while validators could theoretically block illicit transactions, the decentralized nature of the network makes rapid coordination difficult.
Reaching the required two-thirds validator consensus typically takes three days and can extend to two weeks. Barraford explained that halting active swaps would require a vault migration, which also demands a two-thirds majority and significant time, making it impractical for stopping an active attacker who can quickly change addresses.
The protocol currently lacks a mechanism for immediate censorship of individual wallets. While functions like MakePause allow a single node to halt chains for approximately one hour, Barraford argued that broad halts negatively impact legitimate users and do not guarantee a permanent solution against sophisticated attackers.
During a previous attempt to pause Ethereum trading related to stolen Bybit funds, the majority of validators opposed the action. Barraford estimated that roughly 20 validators may have left the network due to disagreements over such interventions, though he noted the network has since added new operators.
The discussion highlighted that while THORChain could technically implement more active risk management, such as the risk layers used by other protocols, any such changes depend entirely on validator consensus. Barraford stated that if the community chooses to prioritize censorship, they possess the governance power to enact it.
