Blockstream Stands Firm Against Ransom Demand for Liquid Network Heist
Blockstream has refused to pay a ransom for bitcoin stolen from the Liquid Network, its federated Bitcoin sidechain. The company made this statement on X after a September exploit in which hackers withdrew approximately 4,000 BTC, worth around $320 million, from the network's federation reserves by exploiting a flaw in its transaction-validation software.
The funds were withdrawn using a flaw in how Liquid cached transaction-verification checks. After Blockstream patched its bridge nodes, the attackers returned 3,400 BTC, roughly 85% of the amount taken, in a single transaction. However, they kept approximately 600 BTC, worth around $47 million.
Blockstream describes the withdrawal as theft and has refused to pay a ransom for the return of stolen funds. The company warned that it will pursue 'every lawful avenue' if the remaining funds are not returned, working with law enforcement, exchanges, service providers, and forensic specialists to trace and recover the assets.