Blockstream refuses ransom after Bitcoin Liquid Network theft

Blockstream refuses to entertain a ransom payment following a theft of Bitcoin via the Liquid Network. The attacker has already sent back around 3,400 BTC, about 85% of the stolen amount, but is still withholding around 598.5 BTC. Blockstream says it will take legal action if the remaining Bitcoin is not returned, and does not rule out cooperation with investigative authorities, exchanges and forensic specialists.

Bitcoin is available at OKX and Bybit.

In brief:

• Blockstream refuses to pay a ransom for the return of stolen Bitcoin from the Liquid Network.
• About 85% of the stolen Bitcoin has already been returned; around 598.5 BTC is still missing.
• Blockstream threatens legal action and cooperation with authorities if the rest is not returned.

Blockstream says the theft is not white-hat activity

In a public statement on X, Blockstream makes clear that it does not regard the attacker’s conduct as responsible security disclosure. According to the company, taking funds without permission and then refusing to return them is not white-hat activity, but ordinary theft.

Blockstream states that it tried in good faith to recover the stolen funds in order to protect users, but that this should not be interpreted as agreement with the conditions demanded. The company also does not want to create a precedent in which open-source software developers are forced to pay ransom that far exceeds their economic involvement.

598.5 BTC still not returned

According to Blockstream, the attacker had already returned around 3,400 BTC, equivalent to about 85% of the total stolen amount. The remaining 598.5 BTC, worth around $46 million at the current Bitcoin price of around $77K, has not yet been returned.

The founder of security firm SlowMist, known as Cos, calls Blockstream’s hardline stance striking. He notes that there may be non-public communication between the two parties that could add nuance to the overall picture.

Blockstream calls on perpetrators to return Bitcoin

Blockstream is still giving the perpetrators the chance to resolve the matter by returning the remaining amount and thereby returning to the standards of responsible security. The company emphasises that Bitcoin is transparent by nature and that transactions always remain traceable.

If the stolen Bitcoin is not returned voluntarily, Blockstream announces it will work with law enforcement, exchanges, blockchain analysis providers and other relevant parties to trace the funds and identify those responsible. The company concludes with a clear message: the Bitcoin community will not stop tracking down the stolen funds.