Did OpenAI Steal a Millennium Proof From a Private AI Chat? - Uneasy Money

Watch on YouTube ↗  |  September 10, 2026 at 22:27  |  1:21:58  |  Unchained (Chopping Block)
Speakers
Alex Thorn — Head of Firmwide Research, Galaxy Digital
Jon — Head of Strategy at Venice, co-founder of ShapeShift
Taylor Monahan — Security Lead, MetaMask
Kain Warwick — Founder, Infinex & Synthetix

Summary

The episode covers the Liquid Network sidechain hack, where a consensus bug allowed the minting of unbacked LBTC and the theft of ~4,000 BTC, followed by a partial return and extortion attempt. It then discusses two new frontier AI models, Astra and Fable 5.1, and the controversy over OpenAI allegedly training on private math proofs. The conversation explores AI privacy, open-source models, identity, and the incentive problems driving the race to superintelligence.

  • Liquid Network suffered a consensus bug allowing unbacked LBTC minting and BTC drain.
  • Hackers returned 85% of funds but are extorting Blockstream for the rest.
  • Discussion of white-hat claims and bad incentives in crypto hacking.
  • Two new AI models, Astra and Fable 5.1, were released.
  • OpenAI faced controversy over allegedly using private AI chats to solve a math proof.
  • Privacy concerns rise as user data may end up in training sets despite toggles.
  • Open-source models and private inference are presented as alternatives.
  • Debate on AI safety, alignment, and incentive-driven races among frontier labs.
Ideas
Alex Thorn Head of Firmwide Research, Galaxy Digital 1:18
Avoid LBTC after consensus bug hack
The Liquid Network's Elements-based federated sidechain suffered a consensus bug that allowed an attacker to mint unbacked LBTC and redeem it through a federation member's allow-listed swap service for real Bitcoin, draining roughly 4,000 BTC. The incident exposed critical security fragility and poor incident response; even though 85% of funds were returned, the remaining 15% is being held as extortion, damaging trust in Liquid and LBTC.
Up Next

This Unchained (Chopping Block) video, published September 10, 2026, features Alex Thorn discussing LBTC. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: Alex Thorn  · Tickers: LBTC