Blockstream Rejects Ransom Demand After 85% of Stolen Bitcoin Returned
Blockstream, the developer of the Liquid Network, has rejected a ransom demand from the group responsible for stealing approximately 4,000 BTC. According to Blockstream, about 85% of the stolen funds, or around 3,400 BTC, have been returned so far.
The remaining 598.5 BTC is still outstanding, but Blockstream insists that it will not pay a ransom to recover the stolen assets. Instead, the company plans to pursue lawful recovery channels involving law enforcement, exchanges, and forensic specialists.
Blockstream argues that paying a ransom would set an unacceptable precedent for developers of open-source Bitcoin infrastructure and impose unnecessary costs on users.
The dispute began with an unusual public exchange between Blockstream and the group responsible for moving the stolen BTC. Initially, the group described themselves as 'white-hat actors,' but Blockstream now considers their actions to be theft rather than responsible disclosure.