Blockstream Denies Ransom Demand, Vows to Recover Stolen Bitcoin
Blockstream has refused to pay a 10% ransom demanded by hackers who stole nearly $70 million in Bitcoin from the Liquid Network. The company, led by Adam Back, said that returning user funds is not enough and that the hackers must return all of the stolen assets.
The incident began on September 6 when roughly 4,000 BTC was withdrawn from Liquid's Federation wallet. A total of 3,400 units were returned to Blockstream, but about 598 remain in the possession of the hackers.
Blockstream has rejected the hackers' claim that their actions qualify as responsible disclosure, stating that taking assets without authorization and then withholding them is theft, not white-hat activity. The company emphasized that Bitcoin transactions are designed to be visible, meaning that funds do not simply disappear.
If the remaining stolen BTC is not returned, Blockstream will pursue every lawful avenue available to recover the assets, including working with law enforcement, exchanges, and forensic specialists.