Blockstream Refuses to Pay Bounty to Liquid Network Hackers

Blockstream has officially rejected a 10 percent bounty demand from the parties responsible for a recent hack on the Liquid Network. The firm stated clearly that taking assets without authorization and demanding payment is theft rather than responsible disclosure. The company noted that it will not set a precedent where developers are forced to pay ransoms to regain control of stolen user funds.

The incident began on September 6 when roughly 4,000 BTC was withdrawn from the Liquid Federation wallet. While 3,400 units have since been returned, about 598 BTC remain in the possession of the hackers. Blockstream emphasized that Bitcoin transactions are visible by design and the evidence of the theft will not simply vanish.

Blockstream warned that it is working with law enforcement and forensic experts to track the assets and identify those involved. The company stated that it still offers the hackers a chance to return the remaining funds voluntarily. If the assets are not returned, the firm plans to use every legal avenue available to pursue the perpetrators.

For now, the Liquid Network has resumed block production and transaction processing, though peg outs remain disabled as a precaution. Node operators are advised to update their software to the latest version while the team continues rigorous security testing and monitoring of the platform.