Blockstream refuses to pay a $47M ransom for stolen Bitcoin from its Liquid Network, asserting theft is not responsible disclosure.
Blockstream Takes a Firm Stand Against Ransom Demands
Blockstream has announced that it will not pay a ransom for the recovery of approximately 598.5 BTC, worth about $47 million, stolen during a recent hack of its Liquid Network. The company has ended negotiations with the hackers, who had initially taken around 4,000 BTC from the network.
In a statement released on Friday, Blockstream emphasized that taking assets without permission and withholding their return constitutes theft, not responsible disclosure. This strong stance was reiterated on social media, where the company made it clear that it would not engage in ransom payments.
To the individuals responsible for the theft of bitcoin from the Liquid Network: Blockstream will not pay a ransom for the return of stolen funds. Taking assets without authorization and withholding their return is a crime, not responsible disclosure.
— Blockstream (@Blockstream) September 11, 2026
Following the hack, the perpetrators returned 3,400 BTC, leaving 598.5 BTC still unaccounted for. The exploit was made possible by a vulnerability in the way Liquid nodes handle range proof verifications, which allowed the attackers to create unsupported L-BTC and convert it into reserve Bitcoin.
Collaboration with Authorities
Blockstream plans to work alongside law enforcement, exchanges, and forensic specialists to recover the remaining stolen funds. The company has already patched the vulnerabilities within ten hours of the attack and has taken measures to ensure the network's security, including pausing peg-outs as a precautionary step.
In a notable twist, the hackers accused Blockstream of neglecting security by allocating insufficient resources to protect its assets. They demanded that the company pay 10% of the ransom using its own funds, threatening further losses for all holders if their demands were not met.
Maintaining Integrity in Open-Source Development
Blockstream has firmly stated that it will not set a precedent where developers of open-source software are coerced into paying ransoms that exceed their economic contributions. The company has also clarified that it will not absorb losses incurred by users, emphasizing the fundamental principle that Bitcoin cannot be created without costs. Blockstream concluded by urging the hackers to return the stolen Bitcoin, highlighting the traceability of transactions and the evidence left behind.
