Blockstream Refuses Ransom Demand in $60M Liquid Network Hack

Blockstream has rejected a ransom demand after hackers stole around 4,000 BTC from the Liquid Network on September 6. The company claims that the incident was an unauthorized seizure and not a white-hat disclosure.

In an X post, Blockstream stated that it would not pay the ransom, citing concerns about setting a precedent for open-source developers to cover ransoms exceeding their financial stake in a project.

More than 3,400 BTC, or roughly 85% of the stolen funds, has been returned since the breach. Blockstream said it will work with law enforcement, exchanges, payment service providers, and forensic experts to trace the remaining funds using Bitcoin's transparent transaction history.

The company's refusal to negotiate a payment could shape how other open-source projects respond to future extortion attempts. Blockstream thanked the community for helping harden the network and recover user funds, while repeating its call for the attackers to return the remaining bitcoin.