Blockstream Accused of 'Delusional' Security Failures by Hackers Demanding $32 Million Bounty

A dispute between Blockstream and hackers claiming to be white-hat has escalated. The hackers accuse Blockstream of serious security failures, stating that $1.5 million was allocated for securing $5 billion in assets.

The hackers demand a 10% bug bounty from Blockstream's own funds and warn that failure to comply could result in a 15% loss for Liquid users. They also accuse Blockstream of being 'delusional, greedy, and arrogant' in its handling of security.

Blockstream and Federation members are working on further security fixes and preparing for a coordinated restart of the network. Users have been advised not to send Bitcoin to Liquid peg-in addresses until the network is back online.