Blockstream Accused of Ignoring Red Team Warnings Before Liquid Hack
A group of security developers from the Bitcoin Red Team claim that Blockstream ignored warnings about a vulnerability in the Liquid sidechain before it was exploited, resulting in the theft of nearly 4,000 BTC. The incident has left around 600 BTC remaining to be recovered.
The Bitcoin Red Team, which includes volunteers who audit and disclose vulnerabilities across bitcoin-aligned projects, allegedly reported the bug that allowed the hack to happen before the incident occurred.
According to Calle, a co-lead of the Bitcoin Red Team, Blockstream's founder and CEO Adam Back inaccurately described how the bug was introduced. Back stated that it was due to an incorrect bug fix, which also involved an AI-found bug deemed non-critical.
Calle countered that Back's statements were inaccurate, citing that Blockstream selectively mentioned patches without providing a complete history of acknowledgement.