Blockstream Refuses Ransom After Liquid Network Bitcoin Theft

Bitcoin infrastructure firm Blockstream has drawn a line in the sand regarding the recent theft from its Liquid network. Hackers managed to walk away with 4,000 bitcoins by exploiting an inflation bug that allowed them to mint fake assets. While the individuals behind the attack returned most of the funds after an exchange of messages, they kept nearly 600 bitcoins worth over 46 million dollars as a ransom demand.

Blockstream publicly stated it will not pay for the return of the stolen property. The company clarified that withholding funds under the guise of responsible disclosure is simply theft. They are now coordinating with law enforcement, exchanges, and forensic specialists to track the stolen assets and identify those involved in the exploit.

The attackers have responded by insulting the firm and threatening to release private encrypted messages unless their demand for ten percent of the total value is met. This situation follows a difficult period for the industry, which recently saw another major security breach involving the Coldcard wallet. Traders and users should watch for further updates as Blockstream works to secure its network and pursue the recovery of the remaining bitcoin.