Blockstream Calls for Full Return of Bitcoin Taken in Liquid Sidechain Incident

Blockstream has formally requested the return of all bitcoin taken during a recent breach of its Liquid sidechain. The incident, which resulted in hackers acquiring over 4,000 bitcoins, reportedly involved individuals identifying as white hat hackers. According to reports, these hackers have indicated a willingness to return most of the funds, but seek to retain a portion as a self-designated reward for exposing vulnerabilities in the system.

Blockstream has expressed clear disapproval of this demand, emphasizing the importance of restoring all assets to affected users and maintaining trust in the Liquid sidechain network. The incident has raised discussion in the crypto community regarding the ethics and protocols around white hat hacking, particularly in circumstances where unauthorized fund transfers have occurred.

As of now, negotiations between Blockstream and the hackers remain ongoing. Further updates are expected as the situation develops and as Blockstream works to secure its network and address potential vulnerabilities.