Blockstream Faces Standoff Over Bitcoin Bug Bounty Demand
- Hackers demanded a 10% bounty while holding onto approximately 598.5 BTC.
- Liquid’s white hats returned 3,400 BTC to Blockstream but retained the disputed amount.
- The conflict escalated on September 9, with threats of further disclosures if demands are unmet.
- Messages between Blockstream and hackers were communicated via the Bitcoin blockchain using OP_RETURN.
- Hackers criticized Blockstream for insufficient security measures, allegedly allocating only $1.5 million or less.
The ongoing standoff between Blockstream and hackers revolves around a demand for a bug bounty payment after the return of most stolen funds but retention of nearly 600 BTC. The hackers threaten to disclose private communications if their demands are not met.
This situation highlights vulnerabilities in asset protection and the complexities in distinguishing ethical hacking from coercion when significant funds remain withheld as leverage. (Source)
