Blockstream Stands Firm Against Ransom Demand for Stolen Bitcoin

Blockstream has refused to pay a ransom for Bitcoin stolen from its Liquid Network, a federated Bitcoin sidechain. The company claims that taking assets without authorization is a crime, not responsible disclosure.

The incident occurred on September 11, when hackers exploited a flaw in the transaction-validation software and withdrew approximately 4,000 BTC (valued at around $320 million) from the network's federation reserves.

Most of the funds have since been returned, but around 600 BTC ($47 million) remains under the attackers' control. Blockstream has stated that it will pursue every lawful avenue to recover the assets if they are not returned voluntarily.

The company pointed out that Bitcoin's transparency means transactions and evidence do not disappear, and a community of engineers and white-hat hackers can help trace the funds.