Blockstream Rejects Ransom After 85% of Stolen Bitcoin Crypto Returns

Key Insights

• Blockstream says about 3,400 Bitcoin crypto, or 85% of the stolen funds, has been returned.
• Around 598.5 BTC is still outstanding as Blockstream rejects any ransom payment.
• Blockstream plans lawful recovery efforts involving authorities, exchanges, and forensic specialists.

Blockstream has rejected a ransom demand tied to the recent Bitcoin crypto theft from the Liquid Network. The company says about 3,400 BTC, or roughly 85% of the stolen funds, has already been returned. However, around 598.5 BTC is still outstanding. Blockstream says it will not pay for the recovery of Bitcoin taken without authorization.

The dispute follows an unusual public exchange between Blockstream and those responsible for moving roughly 4,000 BTC from Liquid. Earlier communications described the group as white-hat actors. However, Blockstream now says withholding stolen funds while demanding payment does not qualify as responsible disclosure.

Bitcoin Crypto Dispute Shifts Toward Legal Recovery

Blockstream said it had engaged in good faith to secure the return of user funds. However, the company rejected the terms attached to the remaining Bitcoin.

According to Blockstream, paying a ransom would create an unacceptable precedent for developers of open-source Bitcoin infrastructure. The company also rejected any approach that would impose recovery costs on users.