Liquid Hackers Slam Blockstream and Demand 10 Percent Bounty

The high stakes drama surrounding the Liquid sidechain has escalated quickly after the hackers behind a recent exploit labeled Blockstream as greedy and arrogant. In a fresh update shared by Samson Mow, the hackers accused the company of severe security negligence. They claimed that Blockstream spent very little to protect billions in assets, and they are now demanding a ten percent bug bounty paid directly from company funds.

The conflict stems from a September security breach where attackers drained about 4,000 Bitcoin from the Liquid Federation wallet. While the hackers returned most of the funds after patched nodes were deployed, they kept nearly 600 Bitcoin and threatened to release private conversation keys if their bounty demands are ignored. Meanwhile, the Liquid network remains paused while developers handle chain split issues and prepare for a safe restart.

Blockstream supporters and former executives have pushed back hard against the demands. Mow warned the hackers that admitting to the theft and asking for a reward is a risky move, noting that investigators likely have more clues than the group realizes. Users must continue waiting on the sidelines and avoid sending Bitcoin to Liquid peg until the team gives the all clear.