Blockstream Refuses to Pay Hackers' Bounty Demand
Blockstream has refused to negotiate with hackers who breached its Liquid Network earlier this month. The company insists that the hackers' demand for a bounty amounts to theft, rather than responsible disclosure.
The incident occurred on [date] when self-described 'white-hat' actors withdrew approximately 4,000 BTC from Liquid's federation wallet. After bridge nodes were patched, about 3,400 BTC were returned, leaving around 598 BTC outstanding.
Blockstream argues that the hackers' behavior crossed a clear line: taking assets without authorization and withholding their return is a crime, not an attempt to improve security. The company has drawn a hard line on 'bounty' demands, calling them 'theft' rather than white-hat activity or responsible disclosure.
Blockstream is urging the remaining Bitcoin holders to return what's still at issue without further conditions. If voluntary return does not happen, the firm will pursue tracing and identification, leveraging cooperation with law enforcement, exchanges, service providers, and forensic specialists.