Blockstream Refuses Ransom for Stolen Liquid Network Bitcoin

Blockstream has refused to pay a ransom for bitcoin stolen from the Liquid Network, its federated Bitcoin sidechain, in a statement posted to X on September 11.

The declaration follows a September exploit in which purported white-hat hackers withdrew roughly 4,000 BTC, worth about $320 million, from the network’s federation reserves by exploiting a flaw in its transaction-validation software.

Most of the funds have since been returned, but roughly 600 BTC, about $47 million, remains under the attackers’ control.

Blockstream frames the withdrawal as theft Blockstream said it will not pay a ransom for the return of stolen funds and described the incident as a crime rather than responsible disclosure.