Blockstream Refuses Ransom Demand, Targets Hacker Assets
Blockstream, a leading Bitcoin infrastructure firm, has refused to negotiate further with hackers who stole over $46 million worth of BTC from its Liquid network. The hackers exploited an inflation bug on the sidechain, creating over 4,000 LBTC tokens that were then cashed out for real BTC.
The white-hat hackers initially returned most of the funds after negotiating with Blockstream, but kept 598.5 coins worth $46 million as ransom. In a recent message, they slammed Blockstream as 'delusional, greedy, and arrogant,' threatening to reveal all encrypted messages unless the company allowed thieves to keep 10% of the BTC.
Blockstream has responded firmly, stating that it will not pay a ransom for the return of stolen funds. The company plans to work with law enforcement, exchanges, and forensic specialists to trace and recover the assets and identify those responsible.