Key Takeaways
Blockstream refuses to negotiate with hackers who stole over 4,000 bitcoins from its Liquid network and kept 598.5 coins as a ransom.
According to Bitcoin Magazine, Bitcoin infrastructure firm Blockstream has refused to negotiate further with hackers who stole 4,000 bitcoins from its Liquid network. Writing on X, Blockstream stated that hackers still had time to return the remaining funds before the company works with law enforcement.
Hackers targeted the federation wallet backing Liquid by exploiting an inflation bug on the sidechain to create over 4,000 LBTC, cashing them out for real on-chain bitcoins. Although they returned most of the funds after negotiating, the hackers kept 598.5 coins worth over $46 million as a ransom demand.
Blockstream stated that taking assets without authorization and withholding their return is a crime rather than responsible disclosure or white-hat activity. The company asserted that it will not pay a ransom and intends to work with law enforcement, exchanges, service providers, and forensic specialists to trace and recover the assets.
In messages written into Bitcoin blocks, the hackers called Blockstream delusional and threatened to reveal encrypted messages unless allowed to keep 10% of the bitcoins as a bug bounty.
Source & Fact-Check Note
This report is synthesized from coverage by Bitcoin Magazine. Information has been fact-checked and structured for market clarity by CoinQuickly’s research desk.
Read original article at Bitcoin Magazine ↗
