Blockstream Rejects Hackers' 400 Bitcoin Ransom Demand Over Liquid Network Breach

Blockstream said in a post on its official X account that it will not pay any ransom to recover the roughly 598.5 bitcoin still held by the attackers behind the Liquid Network breach. According to Arzdigital, the stance came after the attackers returned about 3,400 of the nearly 4,000 bitcoin drained from the Liquid Federation wallet, but then demanded a reward equal to 10 percent of the total funds, around 400 bitcoin.

Based on the funds' value at the time most of the money was returned, the bitcoin still held by the attackers is estimated at close to $47 million. Blockstream stressed that holding unauthorized withdrawn assets constitutes theft, and rejected the attackers' claim to be acting as white hat hackers; the company warned that if the remaining funds are not returned, it will work with law enforcement and exchanges to trace the bitcoin's movement and identify those responsible.