Blockstream Refuses Ransom for 598 Stolen Bitcoin

Blockstream has publicly refused to pay a ransom for approximately 598.5 Bitcoin still held by actors who exploited its Liquid Network, calling the incident theft and not responsible disclosure. The company stated it will work with law enforcement and forensic specialists to trace and recover the remaining funds. The exploit occurred on September 6, 2026, when actors withdrew nearly 4,000 BTC from the Liquid Network's federation wallet. The vulnerability was identified as a cachekey collision in confidential transaction verification logic. Blockstream confirmed that federation cryptographic keys were not compromised. After Blockstream patched the affected bridge nodes, the actors returned approximately 3,400 BTC to the federation wallet on September 7, representing about 85% of the stolen funds. The remaining 598.5 BTC, worth close to $47 million at the time of the partial return, stayed at an address controlled by the actors. The actors then demanded a 10% bounty from Blockstream's own funds, threatening that Liquid holders would face a 15% loss if their demand was not met. Blockstream responded on September 11 with a firm rejection.