Blockstream refuses to pay 10% ransom for nearly 600 stolen Bitcoin
Blockstream declares the hack theft and states it will not pay a 10% bounty while urging hackers to return 598 BTC.
Blockstream stated Friday that it will not pay a ransom to recover Bitcoin held by Liquid Network actors. The company characterized unauthorized asset seizure as criminal theft rather than responsible disclosure. Hackers demanded a 10% bounty from Blockstream funds via an onchain message posted by Jan3 CEO and former Blockstream chief strategy officer Samson Mow on Wednesday. These actors threatened that Liquid holders would face a 15% loss unless the demand was met. Blockstream told the hackers to return the remaining Bitcoin voluntarily before it began tracing assets with law enforcement, exchanges, and forensic specialists. On Sept. 6, Liquid paused operations after self-described white-hat hackers withdrew about 4,000 Bitcoin worth approximately $320 million from its federation wallet. The group subsequently returned 3,400 BTC after Blockstream confirmed affected bridge nodes were patched. Approximately 598 BTC remain outstanding. Liquid resumed block production on Thursday following emergency software updates, though transactions and transfers into or out of the network stay suspended.