Blockstream Declines Ransom Demand for Stolen Bitcoin

Blockstream, the company behind the Liquid Network, has announced that it will not pay a ransom to recover approximately 600 Bitcoin stolen from the network.

The attack occurred on September 6 and exploited a security vulnerability, resulting in the theft of around 4,000 BTC. The attacker later returned about 3,400 of these coins, but withheld roughly 20% of the total amount, claiming it as 'compensation' for discovering the flaw.

In a statement on its X account, Blockstream said that this conduct cannot be considered legitimate white-hat activity and set a precedent where developers are forced to pay ransoms exceeding their economic interests.

The company emphasized that discussions with the attacker did not imply acceptance of their demands. Instead, it urged the attacker to return the remaining coins voluntarily, citing an opportunity to resolve the issue responsibly.