Blockstream Snubs Ransom Demand as Bitcoin Recovery Efforts Intensify
Blockstream has rejected a ransom demand tied to the recent Bitcoin crypto theft from the Liquid Network. The company says about 3,400 BTC, or roughly 85% of the stolen funds, has already been returned.
However, around 598.5 BTC is still outstanding as Blockstream plans lawful recovery efforts involving authorities, exchanges, and forensic specialists.
The dispute follows an unusual public exchange between Blockstream and those responsible for moving roughly 4,000 BTC from Liquid. The actors initially described themselves as white-hat actors, but Blockstream now says withholding stolen funds while demanding payment does not qualify as responsible disclosure.
Blockstream said it had engaged in good faith to secure the return of user funds. However, the company rejected the terms attached to the remaining Bitcoin, citing that paying a ransom would create an unacceptable precedent for developers of open-source Bitcoin infrastructure.