Liquid sidechain just woke up after some 'white-hat' hacker yanked 4,000 BTC (~$320M) from its federation wallet. He gave back 3,400 BTC but still pockets 600 BTC and now wants a 10% bounty on top. Blockstream CEO Adam Back says 'don't panic sell' and promises L-BTC peg is covered 1:1 — but transactions are still frozen, you know the drill.
▪️ Some 'white-hat' exploited Liquid's multisig federation wallet on Sunday, draining 4,000 BTC in one smooth move.
▪️ Network halted all operations — no peg-ins, no peg-outs, no trades. Total blackout, homie.
▪️ Hacker returned 3,400 BTC via onchain messages but demands 10% bounty (~400 BTC) for the rest.
▪️ If Blockstream doesn't pay, hacker threatens to keep the remaining ~600 BTC (already in his pocket).
▪️ Blockstream's security budget: $1.5M to secure $5B in assets. Hacker called it 'dereliction of duty' — no shit.
▪️ Blockstream says L-BTC/BTC peg will be covered 1:1, but peg-out ops stay suspended indefinitely.
📊 Total exploited:
4,000 BTC (~$320M)📊 Returned:
3,400 BTC📊 Hacker kept:
~600 BTC📊 Security budget:
$1.5M vs $5B assetsSo L-BTC holders are stuck — no withdrawals to Bitcoin mainnet until peg-outs resume. Adam Back's promise to cover the peg sounds nice, but he didn't explain how the 600 BTC hole gets filled. You're trusting Blockstream's word and hoping the hacker doesn't dump the rest. Meanwhile, a $1.5M security budget for $5B in assets? That's not a bug bounty — that's a shakedown waiting to happen. Classic.
💬 «Your dereliction of duty is obvious.» — White-hat hacker, onchain message to Blockstream
🔮 White-hat with a 600 BTC ransom? That's not a bug bounty — that's extortion. And Blockstream walked right into it. Surprise, surprise.
@exverse_chat
