Crypto hack: Blockstream rejects ransom as nearly 600 Bitcoin remains missing

Blockstream has refused to pay for the return of Bitcoin after a theft from the Liquid Network because it believes that security researchers should not steal!

Most of the funds have already been returned, but nearly 600 BTC, which is worth about $47 million, remains with the people behind the attack.

How the Liquid Network hack unfolded

The incident began when attackers found a flaw in software used by Liquid, a Bitcoin-based network designed to support faster transfers and other financial services.

Through the weakness, around 4,000 Liquid Bitcoins were generated, which were then exchanged for the real Bitcoin on the network. They [the attackers] described what they did as “white-hat” activity, and about 3,400 BTC was returned afterwards. 

But Blockstream said that the negotiation it had before with the people behind it was just to get users’ funds back, and that it should not be interpreted as accepting their actions or demands.

Blockstream draws a line over the remaining bitcoin

In a public statement, Blockstream declared that it would not be paying a ransom to recover the remaining funds.

Taking assets without authorization and withholding their return is a crime, not responsible disclosure. It is not white-hat activity. It is theft.