Blockstream Refuses Ransom After Hackers Steal Nearly 600 BTC From Liquid Network
(21 days ago) · 1 source · Summarized by CryptoBipto
Hackers exploited a vulnerability in Blockstream's Liquid sidechain and seized nearly 600 BTC. Blockstream publicly refused to pay the ransom demanded by the attackers. The situation remains unresolved, though the article's headline suggests some portion of the bitcoin may have been returned.
WHY IT MATTERS
Think of the Liquid Network like a private express lane built alongside the main Bitcoin highway. Instead of every transaction going through Bitcoin's main network, participating companies can move bitcoin faster and more privately on this side road. However, to use this express lane, users have to lock up their real bitcoin and trust a group of companies to keep it safe — similar to handing your valuables to a group of security guards rather than keeping them in your own safe. In this case, hackers found a way past those guards and took control of a large amount of bitcoin. Blockstream, the company that built this system, refused to pay the hackers to get the funds back. For anyone new to crypto, this event highlights an important lesson: different systems have different trust models, and any time you rely on a third party to hold your assets, there is some risk involved, no matter how reputable the organization.
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- cointelegraph.com
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