‘We Will Not Pay’: Blockstream Rejects 10% Bounty Demand From Liquid Hackers

After 3,400 BTC was returned, Blockstream rejected a further bounty and said it would pursue whoever holds the remaining funds.

Blockstream has drawn a firm line against the party holding the Bitcoin taken from the Liquid Network and has stated that it will not pay a ransom for the return of the stolen funds.

In its latest statement, Adam Back-led blockchain tech company rejected the claim that the incident qualifies as responsible disclosure, while arguing that taking assets without authorization and then withholding them is theft, not white-hat activity.

“Transactions Do Not Disappear”

Blockstream said it had engaged in good faith to recover the stolen user funds, but added that those efforts should not be taken as acceptance of the hackers’ actions or their demands. While rejecting the demand for a bounty, the company said it would not set a precedent where open-source developers are forced to pay a ransom over software built for the Bitcoin community.

“Bitcoin is hard money and can’t be minted without costs; Bitcoin doesn’t haircut users to pay a ransom.”

Blockstream said there was still an opportunity for those holding the stolen BTC to return it and resolve the situation responsibly. If the funds are not returned, however, the company would pursue every lawful avenue available, including working with law enforcement, exchanges, service providers, and forensic specialists to trace the assets and identify those responsible. It also stressed that Bitcoin transactions remain visible by design, meaning the funds and the evidence associated with their movement do not simply disappear.