Blockstream Informs White-Hat Hacker of BTC Vulnerability Fix; 4,000 BTC to Be Returned

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BTC news today: Blockstream informed a white-hat hacker that a vulnerability has been patched, enabling the return of 4,000 BTC. The hacker had previously taken the funds from the Liquid network and demanded the flaw be fixed first. Encrypted details were shared, and Blockstream confirmed via a PGP-signed OP_RETURN that nodes have been patched. Approximately 3,998.5 BTC remains with the hacker. This BTC update confirms the resolution is complete.

According to Mars Finance, Bitcoin News reports that Blockstream has notified white-hat hackers that the vulnerability has been patched and that the return of 4,000 BTC is now safe. Previously, the hacker who withdrew approximately 4,000 BTC from the Liquid network expressed willingness to return the funds but requested the vulnerability be fixed first. The entire negotiation was conducted publicly via Bitcoin OP_RETURN messages. The hacker initially proposed returning "most" of the BTC, but later revised their demand to require the vulnerability be patched first: "Please fix the vulnerability first. The latest submitted code puts the chain at risk. Ensure every node is patched, and then we will safely return the funds after confirming the fix." The hacker also sent encrypted details of the vulnerability to Blockstream. About two hours ago, Blockstream responded with a PGP-signed OP_RETURN message: "The cross-chain bridge nodes have been patched; funds can now be safely returned." Currently, 3,998.5 BTC remain under the hacker's control.

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