Liquid Sidechain Heist: Hackers Demand 10% Bounty from Blockstream

A recent cyber attack on Liquid Network, a Bitcoin sidechain, has raised concerns about the growing threat of cybercrime in the cryptocurrency space. On September 11, hackers stole 4,000 BTC (~$320m) from the Liquid Federation by exploiting a vulnerability in the sidechain node code.

The attackers claimed to be 'white hats' and initially returned 85% of the stolen funds after communicating with Blockstream, the main developer behind the Liquid Network codebase. However, they have refused to return the remaining 15% (~$48m), demanding a 10% bounty from Blockstream's own funds.

The incident has sparked debate about the true intentions of the hackers and the security measures in place for Bitcoin sidechains. While some argue that the hackers' actions were justified as they discovered a vulnerability, others see it as extortion and a threat to user trust.