Blockstream bets 600 Bitcoin by rejecting Liquid hacker’s $50 million bounty demand

Blockstream rejected a hacker’s demand for a $50 million bounty in exchange for details about an alleged vulnerability in Liquid, its Bitcoin sidechain, reportedly putting roughly 600 BTC at risk. The company’s decision indicates it does not view the attacker’s claim or proposed disclosure terms as sufficiently credible or justified. The episode highlights the financial stakes of security incidents involving Bitcoin-linked infrastructure and could prompt renewed scrutiny of Liquid’s security, disclosure practices, and user exposure.