Blockstream Refuses Ransom Demand from Liquid Network Hackers

Blockstream has rejected the ransom demand from hackers who exploited the Liquid Network, stealing around 4,000 BTC. The company claims that taking assets without authorization and withholding their return is a crime, not responsible disclosure.

The hack occurred on September 6th, when about 4,000 L-BTC was created in the network's reserve, which was then converted into BTC through Liquid's standard peg-out process. This released around 4,000 BTC to the hackers.

Liquid reported that the actors had returned 3,400 BTC to the Liquid Federation peg wallet on September 7th, leaving approximately 598.5 BTC outstanding, or about 15% of the total.

Blockstream stated that it will not pay the ransom and instead work with law enforcement, exchanges, service providers, and forensic specialists to trace the assets and identify those responsible for the theft.