The Most Expensive White Hat Bounty in History? Liquid Attacker Drained 4000 BTC, Left $47 Million, Community Divided
In a major security incident, Bitcoin sidechain Liquid Network suffered an abnormal transfer of approximately 4,000 BTC. The attacker exploited a range-proof caching bug in the Elements software, creating and withdrawing L-BTC that lacked real BTC backing, draining roughly 95% of the federated wallet's reserves.
Following the attack, the actor communicated on-chain, identifying as a white hat and demanding that Blockstream, the operator, first patch the vulnerability. After Blockstream confirmed the fix, the attacker returned about 3,400 BTC (85% of the withdrawn amount) to the Liquid federation but retained 598.5 BTC (worth over $47 million) as a "bug bounty."
This event has sparked significant debate within the crypto community. Some argue the action constitutes a high-value ransom rather than ethical white-hat behavior, as the attacker moved funds first and unilaterally decided the bounty size. Others defend the substantial reward, viewing it as a necessary incentive that could set a new standard for critical漏洞 disclosures, especially given historical underpayment or non-payment to security researchers by some projects. The incident highlights ongoing tensions in defining white-hat boundaries and the need for more transparent and reliable bug bounty frameworks.
marsbitIeri 08:21