A security group known as the Bitcoin Red Team has asserted that it warned Blockstream of the vulnerability exploited in a recent hack affecting the Liquid sidechain, according to statements made by the team's co-lead Calle.
The incident resulted in the movement of close to 4,000 BTC from Liquid federation wallets. In response to Blockstream founder and CEO Adam Back's explanation that the bug was introduced through an incorrect fix to an AI-discovered non-critical bug, Calle stated that Blockstream ignored security disclosures from the Red Team.
Calle claimed that Blockstream "selectively and inaccurately mentioned the patches without complete and very clear history of acknowledgement." The Red Team indicated it would publish a full account of the disclosure process after Blockstream releases its postmortem on the incident.
Blockstream's former Chief Security Officer Samson Mow rejected the allegations, stating that no emails were ignored and that such claims diminish the Red Team's professionalism.
Liquid restarted block production on September 10 following the hack. Transactions were subsequently enabled, though peg-outs remain disabled as a precautionary measure without a defined timeline for restoration. A white-hat hacker currently controls approximately 600 BTC from the incident, requiring external deposits to restore the 1:1 peg between BTC and L-BTC, Liquid's native asset.
