Liquid sidechain exploited; hackers demand 10% bounty, alleging Blockstream allocated only $1.5M to secure $5B in assets while network remains paused.
Security & Exploits ·
Parties claiming to be white-hat hackers have accused Blockstream of allocating only $1.5 million to secure $5 billion in assets on the Liquid sidechain and are demanding a 10% bounty, threatening a 15% loss for users if the demand is not met. The sidechain remains paused while Blockstream addresses security vulnerabilities and a chain split, with approximately 598 BTC still held by the hackers following their initial withdrawal of roughly 4,000 BTC in September. A former Blockstream executive cautioned the hackers that publicly demanding payment after taking funds may expose them to serious legal consequences and that returning the assets does not guarantee they can escape repercussions.