Blockstream Hacked for 8,600 BTC Amid Claims of Ignored Warnings

Blockstream, a leading blockchain company, recently faced a security breach when hackers exploited a vulnerability in its system. The Bitcoin Red Team, an independent group of security researchers, claims that Blockstream ignored warnings before the hack.

The attackers initially stole around 8,600 BTC but returned 3,400 BTC after engaging in on-chain discussions with the company. However, they withheld the remaining balance and sought a 10% bounty, which Blockstream refused to pay, stating it would not 'pay a ransom for the return of stolen funds.'

In response to the breach, Blockstream CEO Adam Back explained that two non-critical issues interacted to create the exploited condition. He attributed the bug to an incorrect fix introduced by developers using artificial intelligence.