Blockstream Refuses Ransom Demand as Nearly 600 Bitcoin Remain Missing
A hack on the Liquid Network has resulted in nearly 600 Bitcoin remaining missing after attackers exploited a flaw in software used by the network.
The attackers, who claimed to be security researchers, generated around 4,000 Liquid Bitcoins and exchanged them for real BTC. They described their actions as 'white-hat' activity, returning about 3,400 BTC afterwards.
However, Blockstream, the company behind the Liquid Network, has refused to pay a ransom to recover the remaining funds. In a public statement, they declared that taking assets without authorization and withholding their return is theft, not responsible disclosure or white-hat activity.
Blockstream stated that paying the ransom would set a bad precedent for developers of open-source software and promised to aid law enforcement, exchanges, and BTC blockchain investigators to find the remaining BTC and trace those responsible. They ended with a direct demand: 'Return the bitcoin.'