NEAR Intents Blocks $50 Million in Hacker Transactions from Bitget

NEAR Intents has successfully blocked over $50 million worth of attempted transfers linked to a recent hack of Bitget, although many of these funds were ultimately moved through other platforms.

Details of the Intervention

The cryptocurrency swap service identified around $503,000 associated with Bitget's $388 million hack during asset exchanges, with approximately $166,000 managing to go through the service. This action stands in stark contrast to THORChain's refusal to prevent transactions from hacker addresses, raising questions about NEAR Intents' claim of being a permissionless platform.

According to Alex Shevchenko, the general manager of NEAR Intents, the protocol's “SHIELD” system effectively halted most of the transactions and froze a significant amount in the process. Shevchenko noted that while the total attempted transfers were substantial, only a small portion of the hacked funds were actually processed through their service.

“NEAR Intents typically handles over $100 million in cross-chain trading volume daily. However, in this instance, only a minimal amount of the hacked funds attempted to flow through us,” he stated. He elaborated that the SHIELD system detects irregular transaction patterns and gathers data from various sources to make informed decisions about handling transactions.

This incident illustrates that being a permissionless and open platform does not equate to allowing malicious actors to exploit its services.

Criticism of the Permissionless Claim

The intervention has sparked criticism regarding whether NEAR Intents can still label itself as permissionless. Vini Barbosa, a technical writer at Ramp Labs, commented on this issue, emphasizing that true permissionless systems should remain neutral and accessible to all users, including those facing government oppression.

In defense of NEAR Intents, co-founder Illia Polosukhin clarified that while the platform enables individuals to own and transfer assets freely, it does not compel every application built on its blockchain to facilitate every transaction. He stated, “Permissionless means nobody needs permission to own and transfer assets,” but it does not imply that every liquidity provider must process all transactions.

This approach is notably different from THORChain, which has opted to allow unrestricted access to its network while maintaining emergency controls to protect the protocol.

As NEAR Intents holds the frozen funds pending legal and recovery processes, Shevchenko has urged Bitget to reach out through appropriate legal channels, indicating that the platform will waive the recovery bounty. However, the report did not clarify who is responsible for authorizing the release of funds or how users who were incorrectly flagged can reclaim their assets. Shevchenko concluded, “NEAR Intents will remain a permissionless infrastructure, but with boundaries, as we actively combat the laundering of stolen funds.”