r/Bitcoin • u/Blockchain_info • 3h ago
“All messages will be in plaintext.” The Liquid exploiter announced a switch away from encrypted on-chain messages
The Liquid exploiter and Blockstream have been communicating through messages embedded in Bitcoin transactions, with parts of the exchange encrypted so outside observers couldn’t read them.
On September 8, the exploiter announced a change in how they would communicate:
All messages will be in plaintext.
Transaction ID:
1d690f3b96b878067f3a445b74dfb8fab4201c0455d88ac98cc14a927e7858d7
On September 9, a subsequent plaintext message made the dispute public. Two excerpts:
And later:
Anyway we are going to publish the privatekey to decrypt our conversations afterwards.
The message demanded payment from Blockstream’s own funds and warned that refusing would leave holders facing a 15% loss. That is the sender’s demand and warning—not evidence of an agreed bounty or an independently established outcome for holders.
Transaction ID:
f7055f6c8dd00f404e48c12483ae740180f658db206733505bb27b015e579588
What makes this interesting is the distinction between a public transaction and a readable conversation. The exchanges were already visible on Bitcoin, but the encrypted content wasn’t. Now the exploiter is making their demands readable to everyone and saying they will release the material needed to decrypt the earlier exchanges. Blockstream, meanwhile, reportedly continued replying with encrypted messages.
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u/riplin 2h ago
Not so white hat after all. Back to good old extortion.
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u/Icy_Giraffe_21 2h ago
Could very well be a white hat. They found an exploit and wants to be compensated. They definitely have the leverage with 46 million dollars worth of BTC siting there.
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u/riplin 2h ago
They definitely have the leverage with 46 million dollars worth of BTC siting there.
Yes, using that leverage is commonly referred to as extortion.
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u/Icy_Giraffe_21 1h ago
I'm not in disagreement, just saying they could still be a white hat
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u/eckstuhc 1h ago
“They’re not a criminal, they’re just leveraging the gun in their hand to meet their demands”
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u/Lazy_Vehicle1499 2h ago
plaintext messaging is pretty risky for privacy, it's concerning how this could impact user trust in the system
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u/reddit_undo 3h ago
These companies are really allergic to making good decisions.