Liquid Network Hacker's $47M 'White-Hat' Question: A Bounty or Extortion?
A recent incident involving Liquid Network has left many in the crypto community questioning the actions of a self-proclaimed white-hat hacker. The individual returned approximately 3,400 BTC to the network's federation wallet after Blockstream confirmed its vulnerability had been patched.
However, nearly $47 million in Bitcoin remains under the actor's control, sparking concerns about the legitimacy of their 'white hat' label. Industry observers have pointed out that conventional security researchers typically disclose vulnerabilities or coordinate with affected projects before moving large amounts of funds.
Charles Guilmet, CTO of Ledger, noted on X that the remaining funds were still under the control of the self-proclaimed white hat, suggesting it could resemble blackmail more than conventional white-hat security work. Others have questioned the 'white hat' label, citing a lack of publicly disclosed agreement specifying a bounty.
Blockstream and the Liquid Federation have been working to resolve the situation, deploying updated software and preparing for a coordinated network restart. The incident has highlighted the need for transparency and clear communication in such situations.