Blockstream Issues Ultimatum as Hackers Hold Onto Nearly 600 BTC
A group of hackers drained nearly 4,000 BTC from Blockstream's Liquid Network on September 6, but returned most of it after negotiating a deal. The hackers initially claimed to be 'white-hats' and demanded a 10% bounty in return for returning the stolen funds. However, Blockstream refused to pay, calling it an extortion demand rather than a legitimate vulnerability disclosure.
Blockstream has now issued a direct ultimatum: 'Return the bitcoin.' The company has warned that if the remaining 598.5 BTC is not returned, it will work with law enforcement, exchanges, and blockchain investigators to track down the hackers and recover the stolen funds. This move is seen as a significant escalation in the dispute.
The incident has raised questions about the security of Blockstream's Liquid Network and the handling of vulnerability disclosures. The hackers' decision to demand payment for returning the stolen funds has been widely criticized, with some arguing that it undermines the principle of white-hat hacking.