🚨 Blockstream rejects $50M bounty demand from Liquid hacker
Blockstream has officially refused to pay a 600 BTC bounty, worth roughly $50 million, to the attacker who exploited the Liquid network on Sept. 6. The company stated it will not establish a precedent where developers are forced to pay demands that exceed their economic participation.
The attacker originally minted 4,000 unbacked L-BTC and withdrew 3,996 real BTC. After Blockstream patched the vulnerability, the hacker returned 3,400 BTC but demanded a 10% bounty to return the remaining 15% shortfall.
CEO Adam Back confirmed that Blockstream will instead pursue the remaining funds through law enforcement, exchanges, and forensic specialists. The company assured users that the L-BTC to BTC peg will ultimately be covered 1:1.
#Blockstream #LiquidNetwork #Bitcoin #CryptoHack
Blockstream has officially refused to pay a 600 BTC bounty, worth roughly $50 million, to the attacker who exploited the Liquid network on Sept. 6. The company stated it will not establish a precedent where developers are forced to pay demands that exceed their economic participation.
The attacker originally minted 4,000 unbacked L-BTC and withdrew 3,996 real BTC. After Blockstream patched the vulnerability, the hacker returned 3,400 BTC but demanded a 10% bounty to return the remaining 15% shortfall.
CEO Adam Back confirmed that Blockstream will instead pursue the remaining funds through law enforcement, exchanges, and forensic specialists. The company assured users that the L-BTC to BTC peg will ultimately be covered 1:1.
#Blockstream #LiquidNetwork #Bitcoin #CryptoHack
🚨 Liquid Network Exploit: 4,000 BTC Stolen Without Private Key Breach
The Liquid network suffered a major security incident on Sept. 6, resulting in the loss of nearly 4,000 BTC. In a rare type of attack, the network's private keys were not compromised. Instead, attackers exploited a software flaw that tricked the system into approving unauthorized withdrawals.
Attackers generated L-BTC (Liquid Bitcoin) without providing the required BTC backing. They then exchanged these unbacked tokens for real Bitcoin from the shared reserve. The automated withdrawal software trusted the incorrect account balances and authorized the transfer using valid keys.
This event highlights that private key security is not a total guarantee of safety. If smart contracts or underlying network software contain vulnerabilities, assets can be drained even when keys remain secure.
#Bitcoin #LiquidNetwork #CryptoSecurity #BTC
The Liquid network suffered a major security incident on Sept. 6, resulting in the loss of nearly 4,000 BTC. In a rare type of attack, the network's private keys were not compromised. Instead, attackers exploited a software flaw that tricked the system into approving unauthorized withdrawals.
Attackers generated L-BTC (Liquid Bitcoin) without providing the required BTC backing. They then exchanged these unbacked tokens for real Bitcoin from the shared reserve. The automated withdrawal software trusted the incorrect account balances and authorized the transfer using valid keys.
This event highlights that private key security is not a total guarantee of safety. If smart contracts or underlying network software contain vulnerabilities, assets can be drained even when keys remain secure.
#Bitcoin #LiquidNetwork #CryptoSecurity #BTC