Blockstream Stands Firm Against Liquid Hackers' Bounty Demand

Blockstream has refused to negotiate with hackers who withdrew approximately $320 million in BTC from Liquid's federation wallet earlier this month.

The incident occurred after self-described 'white-hat' actors removed roughly 4,000 BTC from the wallet. Blockstream says it engaged with the attackers in good faith to recover user funds but will not comply with their demands for a bounty payment.

According to Blockstream, the hackers initially withdrew approximately $320 million in BTC and later returned around 3,400 BTC after bridge nodes were patched. However, about 598 BTC still remains outstanding.

The company has stated that it will pursue tracing and identification of the remaining funds if they are not returned voluntarily. This may involve cooperation with law enforcement, exchanges, service providers, and forensic specialists.