Liquid Network Reboots After $320M Hack, Blockstream Refuses Ransom

A nearly $320 million exploit on Liquid Network has come to an end after the network restarted in a controlled mode, but the saga continues as Blockstream refuses to pay ransom for the remaining stolen Bitcoin.

The attackers, who claimed to be 'white-hat' hackers, moved 4,000 BTC from Liquid's Federation wallet on September 6. One week later, they returned 3,400 BTC, leaving about 598.5 BTC worth around $47 million outstanding.

Blockstream rejected the ransom demand and instead chose to pursue lawful avenues to recover the remaining Bitcoin, warning that paying a ransom could create a bad precedent for developers of open-source Bitcoin infrastructure.