Blockstream refuses to pay ransom for 598 stolen Bitcoin
Blockstream rejected a 10% ransom demand for 598 Bitcoin held by Liquid Network hackers. The company stated it will pursue legal recovery instead of financial payment.
Blockstream refused to pay a ransom demand for 598 Bitcoin currently held by hackers. The company declared that unauthorized asset withholding constitutes theft rather than responsible security disclosure.
The hackers requested a 10% bounty from Blockstream funds to release the remaining coins. They warned that Liquid Network holders would face a 15% loss if the demand was not met.
Initial theft and partial return
Liquid Network paused operations on September 6 after actors withdrew 4,000 Bitcoin. The value of the stolen funds was approximately 320 million dollars at the time of the incident.
The hackers returned 3,400 Bitcoin after Blockstream patched the affected bridge nodes. This action left 598 Bitcoin outstanding in the hands of the unauthorized actors.
Recovery strategy and network status
Blockstream stated it will collaborate with law enforcement and forensic specialists. The company aims to trace the assets and identify those responsible for the theft.
Liquid resumed block production on Thursday following emergency software updates. The network is currently producing empty blocks while all transactions remain suspended.
Market context and reporting
Cointelegraph reported that the incident occurred amid record inflows into Bitcoin ETFs. The security breach highlighted vulnerabilities in sidechain infrastructure during a period of high market activity.
