Bancor Exec Defends Decentralization Claim Following $13M Hack

Bancor Exec Defends Decentralization Claim Following $13M Hack

Swiss decentralized cryptocurrency exchange has faced huge criticism following its recent hack in which the exchange reportedly lost $23.5 million worth of cryptocurrencies.

However, Bancor noted in an update on the matter that it was able to able to reduce its loss by $10 million after freezing the stolen 3.2 million BNT tokens using a feature installed in the Bancor protocol. This ignited a fresh debate on the exchanges’ claim of decentralization.

A Twitter user by name Jackson Palmer noted:

“The key thing here is not the hack itself – It’s the fact that Bancor team had the ability to freeze funds. How many other “decentralized” DApps have a built-in kill switch that is centrally controlled?”

Litecoin founder Charlie Lee also noted in a Twitter post:

“A Bancor wallet got hacked and that wallet has the ability to steal coins out of their own smart contracts. An exchange is not decentralized if it can lose customer funds OR if it can freeze customer funds. Bancor can do BOTH. It’s a false sense of decentralization.”

Speaking to Youtube Channel Crypto Zombie, CEO of Bancor Omri Cohen defended the exchanges’ claim of decentralization claim while addressing the recent FUD surrounding the Bancor hack.

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