Bitcoin Red Team’s Warning Ignored Before Liquid Hack
- The Bitcoin Red Team claimed it warned Blockstream about a vulnerability before nearly 4,000 BTC were moved from Liquid federation wallets.
- Blockstream attributed the hack to a flawed AI bug fix and denied ignoring any security warnings.
- As of September 10, Liquid has restored transactions but peg-outs remain disabled with nearly 600 BTC still missing.
The Bitcoin Red Team alleges that its warning could have prevented the exploit that resulted in the loss of close to 4,000 BTC. Despite Blockstream’s denial of negligence, discrepancies in accounts persist regarding the events leading to the hack.
Liquid resumed block production on September 10, yet the network remains cautious by disabling peg-outs as efforts continue to recover the missing BTC. (Source)
