Liquid Hackers Demand 10% Bounty from Blockstream Amid Security Dispute

A dispute has escalated between Blockstream and a group claiming to be white-hat hackers who stole around $320 million in BTC from Liquid's Federation wallet on September 6.

The hackers demanded a 10% bug bounty, which they claim should come from Blockstream's own funds, or risk causing a 15% loss for Liquid users. They also accused the company of being 'delusional, greedy, and arrogant' in its handling of security.

Blockstream has kept the sidechain paused while it works with Federation members to fix security issues and prepare for a coordinated restart.

Samson Mow warned the hackers that they may be underestimating the consequences of their actions and questioned whether admitting to taking the BTC and then demanding a bounty was wise.