Blockstream Rejects Ransom Demand After Liquid Hack

Blockstream said it will not pay a ransom to recover bitcoin taken in a recent attack on the Liquid Network. The company said it plans to work with law enforcement, exchanges, and forensic experts if the funds are not returned voluntarily. According to the report, the hackers demanded a 10% bounty from Blockstream in exchange for returning the remaining assets and warned Liquid holders could face losses if they did not comply. Blockstream responded that taking and withholding assets without permission is theft, not responsible disclosure. The Liquid Network paused operations on Sept. 6 after hackers withdrew about 4,000 bitcoin from a federation wallet. About 3,400 BTC were later returned after security patches were applied, leaving roughly 598 BTC still outstanding. Liquid has since resumed block production, but transfers remain suspended.