Blockstream Refuses Ransom to Liquid Attackers; 4,000 Bitcoins Stolen, Over 80% Already Returned

Refusal of Ransom and Legal Response Policy
On the 11th, Blockstream issued a statement via its official X (formerly Twitter) account, clearly refusing to pay a ransom to the attackers regarding the negotiation for the return of funds stolen from the Bitcoin (BTC) sidechain "Liquid Network."
On September 6, an incident occurred where 4,000 BTC was leaked from a wallet managed by the Liquid Federation. Most of the approximately 4,205 BTC held by the wallet was withdrawn at once. Blockstream explained that the cause was not a leak of the private key, but a bug in the underlying software of Liquid, "Elements."
After applying a revised software version, block generation was resumed on the 10th, and normal transfer functions were also restored. However, the peg-out function remains suspended as a precautionary measure as of the 11th.
According to the company, negotiations through on-chain messages with the attackers have continued since the incident, and over 3,400 BTC, which is about 85% of the stolen 4,000 BTC, has already been returned. Approximately 598 BTC remains unrecovered.
In the statement, Blockstream named the attackers, asserting that the act of seizing assets without permission and refusing to return them is neither responsible disclosure nor white-hat behavior, stating, "It is theft." The company emphasized that while it has made sincere efforts toward the return of funds, this stance does not condone the actions or demands of the attackers.
Regarding the refusal of ransom, the company expressed that there should not be a precedent where open-source software developers are forced to pay ransoms that far exceed their economic involvement. They highlighted that Bitcoin is a hard currency that incurs costs for new issuance and will not use users' assets to pay ransoms.

Continuing to Collaborate with Law Enforcement for Tracking

Furthermore, Blockstream clarified its policy to pursue all legal means in collaboration with law enforcement agencies, exchanges, payment service providers, and forensic experts to track the stolen funds.
It pointed out that Bitcoin's transaction history is designed to be transparent, leaving evidence along with the movement history of funds, and expressed its intention to continue investigations aimed at identifying the attackers.
At the end of the statement, they reiterated their call for the return of funds to the attackers and expressed gratitude to the community for their efforts in identifying and fixing vulnerabilities and assisting in the recovery of user funds. They have not wavered in their stance to take legal action if the return is not complied with, and the developments of the situation continue to attract attention.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.