Blockstream Stands Firm Against Liquid Hackers' Ransom Demand

Blockstream has refused to negotiate with hackers who exploited the Liquid Network and stole approximately $320 million in Bitcoin. The company claims that the hackers' demand for a 10% bounty from Blockstream's own funds is an attempt at extortion, not responsible disclosure.

The incident began on September 6 when 'white-hat' actors allegedly withdrew around 4,000 BTC from Liquid's federation wallet. They later returned 3,400 BTC, but retained approximately 598 BTC, worth roughly $18 million at the time of writing.

Blockstream has stated that it will involve law enforcement, exchanges, service providers, and forensic specialists to help recover the remaining assets if they are not returned voluntarily.