NEAR Intents has blocked over $50 million in attempted transactions linked to the Bitget hack, raising questions about its permissionless status.
NEAR Intents has effectively blocked more than $50 million in attempted transactions linked to the recent Bitget hack, although a portion of these funds was still transferred through other platforms.
Intervention Details
During its asset exchange processes, NEAR Intents identified approximately $503,000 tied to Bitget's $388 million hack, with around $166,000 successfully processed through its service. This action contrasts with THORChain, which has been criticized for permitting transactions from hacker addresses, raising concerns about NEAR Intents' designation as a permissionless platform.
Alex Shevchenko, general manager of NEAR Intents, stated that the protocol’s “SHIELD” system played a crucial role in halting most transactions and freezing a significant amount of assets. He emphasized that despite the large volume of attempted transfers, only a small fraction of the hacked funds were processed through their service. “Typically, we manage over $100 million in cross-chain trading daily, but only a minor amount of the hacked funds tried to flow through us,” he explained.
The incident highlights that being a permissionless platform does not mean allowing malicious activities to occur unchecked.
Debate on Permissionless Definition
The intervention has prompted discussions about NEAR Intents' ability to maintain its permissionless label. Vini Barbosa, a technical writer at Ramp Labs, pointed out that genuine permissionless systems should be neutral and accessible to all users, including those facing governmental restrictions.
In response, co-founder Illia Polosukhin clarified that while NEAR Intents allows individuals to own and transfer assets freely, it is not required to process every transaction made by applications on its blockchain. He stated, “Permissionless means nobody needs permission to own and transfer assets,” but it does not necessitate that every liquidity provider must facilitate all transactions.
This contrasts with THORChain's approach, which allows unrestricted network access while maintaining emergency controls for the protocol's protection.
As NEAR Intents retains the frozen funds pending legal and recovery proceedings, Shevchenko encouraged Bitget to engage through the appropriate legal channels and indicated that the platform is willing to waive the recovery bounty. However, details regarding the authorization for fund release or how incorrectly flagged users can recover their assets remain unclear. Shevchenko concluded by affirming, “NEAR Intents will remain a permissionless infrastructure, but with boundaries, as we actively combat the laundering of stolen funds.”
