Blockstream Accused of Ignoring Security Warnings Before Liquid Hack

The Bitcoin Red Team has claimed that Blockstream was warned about security vulnerabilities before the Liquid exploit on September 6. According to Calle, co-lead of the Bitcoin Red Team, a security report was sent to Blockstream before the exploit, but it ignored the warning.

An attacker removed 4,000 BTC from Liquid's federation reserves and returned 3,400 BTC after negotiations. However, the attacker is still holding onto 598.5 BTC and demanding a 10% bounty for its return.

Blockstream has rejected the payment demand, stating that it 'will not pay a ransom for the return of stolen funds.' This decision comes despite the fact that the company is requesting the return of 598.5 BTC held by the attacker.