Blockstream Rejects Ransom Demand From Liquid Network Hackers

Blockstream has publicly refused to pay a ransom to hackers who withdrew Bitcoin from its Liquid Network, labeling the act as theft and rejecting demands for a 10% bounty. The company stated it will not negotiate with the actors, who are holding approximately 598 BTC from an exploit that began on September 6. The incident started when self-described whitehat hackers withdrew about 4,000 BTC, then worth approximately $320 million, from the Liquid Network's federation wallet. In the following days, the actors returned 3,400 BTC after Blockstream said affected bridge nodes were patched, leaving roughly 598 BTC outstanding. In a statement released Friday, Blockstream said it engaged with the attackers in good faith to recover user assets but will refuse any demand for a bounty paid from its own funds. The company framed the hackers' actions as criminal, stating, "Taking assets without authorization and withholding their return is a crime, not responsible disclosure. It is not whitehat activity. It is theft." The hackers had demanded the 10% bounty via an onchain message, warning that Liquid holders would otherwise face a 15% loss.