Blockstream Rejects Ransom Demand for Stolen Liquid Bitcoin
Blockstream has refused to pay a ransom of nearly $47 million for the remaining Bitcoin stolen from the Liquid Network, which is still under the control of the actors behind the exploit. The company had initially engaged with the actors in good faith to recover funds belonging to users and protect the community, but ultimately rejected their demand for a 10% bounty.
According to Blockstream, taking assets without authorization and withholding their return amounts to theft, not responsible disclosure or white-hat activity. The company cited this as the reason for refusing to pay the ransom and instead plans to work with law enforcement agencies, exchanges, service providers, forensic specialists, and other parties to trace and recover the remaining Bitcoin.
The exploit occurred on September 6, when nearly 4,000 BTC was withdrawn from Liquid's federation wallet. After Blockstream patched the affected bridge nodes, the actors transferred 3,400 BTC back to the federation address, leaving approximately 598.5 BTC outstanding.