Blockstream Hackers Demand 10% Bounty as Standoff Escalates

Blockstream is facing a standoff with hackers who claim to be white hats after they drained nearly 4,000 BTC from Liquid's reserves. The group returned 3,400 BTC on Monday, but retained 598.5 BTC and are now demanding a 10% bug bounty from Blockstream.

The hackers accuse Blockstream of failing to adequately protect billions of dollars in assets, claiming the company allocated only $1.5 million toward security. They claim this is a 'flagrant neglect of security' and a sign of 'complete mismanagement.'

Blockstream's response to the demand remains unclear, but the hackers have threatened further losses for holders if they do not comply. The group has also suggested that they may publish encrypted communications exchanged during negotiations with Blockstream.