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Bits + Bips · Tuesday · 1 hr

How the Bitget Hack Reopened Crypto's Fight Over Neutral Infrastructure

Bitget lost $388 million to spoofed transaction data, and THORChain kept routing the funds. The hosts ask what decentralization means if you can stop and don't. Sponsor ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Visit 1inch.com to swap tokenized securities, crypto and more. Simple. Secure. Self-custodial. Whatever asset you’re buying - swap it at ⁠⁠⁠⁠⁠⁠1inch.com⁠⁠⁠⁠⁠⁠. Quick favor: We're deciding what Unchained does next; new shows, stream times, what's worth paying for.⁠ Our listener survey⁠ takes five minutes, it's anonymous, and I read the write-in answers myself. Everyone who takes it can enter a drawing for a free year of Unchained Premium or Bits + Bips Premium. Open through Sunday, October 18. — Laura 👉 Heads up! If you haven't yet, be sure to subscribe to Bits + Bips on its dedicated channels. Follow us on Apple Podcasts, YouTube, Spotify, X, Unchained and wherever you get your podcasts. 🔥 Apple Podcasts - ⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/bits-bips/id1827931786⁠⁠⁠⁠⁠⁠⁠ 🔥 YouTube - ⁠⁠⁠⁠⁠⁠⁠https://www.youtube.com/channel/UCuKiSkbYrUOOEEiYQEVPniQ⁠⁠⁠⁠⁠⁠⁠ 🔥 Spotify - ⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/6aSBMrOyi33aVDCULJ9mjN?si=NTLk-jl5QGeytA6-2kxMVQ&nd=1&dlsi=42f0b13dd53c4ba0⁠⁠⁠⁠⁠⁠⁠ 🔥 X - ⁠⁠⁠⁠⁠⁠⁠https://x.com/bitsandbips⁠⁠⁠⁠⁠⁠⁠ 🔥 Unchained - ⁠⁠⁠⁠⁠⁠⁠https://unchainedcrypto.com/bitsandbips/⁠⁠⁠⁠⁠⁠⁠ Attackers took roughly $388 million from Bitget without touching a private key, spoofing transaction data so the exchange's own approval process signed off on the withdrawals. Then the stolen ETH kept swapping into Bitcoin through THORChain, which declined to block the addresses. Austin Campbell, Ram Ahluwalia, and Chris Perkins weigh whether a network that has paused itself before can claim it has no off switch, and why Chris and Austin say attackers will keep coming until they face real consequences, including counterhacking. They also cover a global tightening cycle that pushed the US 10-year yield to its highest level since 2007, why Ram would rather own utilities than Treasurys, the strain on Oracle's data center financing, and who is liable when an AI agent breaks the law. If weak security keeps pushing users back to intermediaries, crypto may end up rebuilding the system it set out to replace. Hosts ⁠⁠⁠⁠⁠⁠⁠⁠⁠Austin Campbell⁠⁠⁠⁠⁠⁠⁠⁠⁠ - Host of Bits + Bips, Founder of Zero Knowledge Group, and Adjunct Professor at NYU Stern ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Ram Ahluwalia⁠⁠⁠⁠⁠⁠ - Co-host of Bits + Bips and CEO of Lumida ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Chris Perkins⁠⁠⁠⁠⁠⁠⁠⁠⁠ - Co-host of Bits + Bips and Head of Franklin Crypto Timestamps: 🚨 01:28 How attackers took $388M from Bitget without stealing a single private key 🔌 06:57 Why Austin says THORChain's past chain pauses undercut its neutrality defense 🎯 09:43 Counterhacking and consequences: how to stop state-backed crypto thieves 🌊 18:37 1inch Aqua: Back multiple liquidity positions with one wallet balance at http://unchainedcrypto.com/go/1inch-sn 📈 19:45 Rate hikes everywhere and a US 10-year at its highest since 2007 💡 22:03 Is it time to buy bonds? Why Ram would rather own utilities 🏗️ 33:52 Will credit markets, not regulators, discipline the AI buildout? 🤖 42:14 Why AI agents aren't legal persons and how product liability applies 💸 54:57 Why Chris sees the best venture setup in years at crypto, AI, and quantum

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show notes

Bitget lost $388 million to spoofed transaction data, and THORChain kept routing the funds. The hosts ask what decentralization means if you can stop and don't.


Sponsor


Quick favor: We're deciding what Unchained does next; new shows, stream times, what's worth paying for.⁠ Our listener survey⁠ takes five minutes, it's anonymous, and I read the write-in answers myself. Everyone who takes it can enter a drawing for a free year of Unchained Premium or Bits + Bips Premium. Open through Sunday, October 18.

— Laura


👉 Heads up! If you haven't yet, be sure to subscribe to Bits + Bips on its dedicated channels. Follow us on Apple Podcasts, YouTube, Spotify, X, Unchained and wherever you get your podcasts.

Attackers took roughly $388 million from Bitget without touching a private key, spoofing transaction data so the exchange's own approval process signed off on the withdrawals. Then the stolen ETH kept swapping into Bitcoin through THORChain, which declined to block the addresses.

Austin Campbell, Ram Ahluwalia, and Chris Perkins weigh whether a network that has paused itself before can claim it has no off switch, and why Chris and Austin say attackers will keep coming until they face real consequences, including counterhacking.

They also cover a global tightening cycle that pushed the US 10-year yield to its highest level since 2007, why Ram would rather own utilities than Treasurys, the strain on Oracle's data center financing, and who is liable when an AI agent breaks the law.

If weak security keeps pushing users back to intermediaries, crypto may end up rebuilding the system it set out to replace.


Hosts

Timestamps:

🚨 01:28 How attackers took $388M from Bitget without stealing a single private key

🔌 06:57 Why Austin says THORChain's past chain pauses undercut its neutrality defense

🎯 09:43 Counterhacking and consequences: how to stop state-backed crypto thieves

🌊 18:37 1inch Aqua: Back multiple liquidity positions with one wallet balance at http://unchainedcrypto.com/go/1inch-sn

📈 19:45 Rate hikes everywhere and a US 10-year at its highest since 2007

💡 22:03 Is it time to buy bonds? Why Ram would rather own utilities

🏗️ 33:52 Will credit markets, not regulators, discipline the AI buildout?

🤖 42:14 Why AI agents aren't legal persons and how product liability applies

💸 54:57 Why Chris sees the best venture setup in years at crypto, AI, and quantum

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