Blockstream Says It Won't Pay Ransom After 4,000 BTC Theft on Liquid Network
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Blockstream's refusal to pay a ransom after ~4,000 BTC was withdrawn from the Liquid Network highlights operational and security risk in Bitcoin sidechains and related infrastructure. The incident and Liquid's suspension of operations can raise counterparty and custody concerns for users and connected service providers. Blockstream's intent to work with law enforcement and forensic firms may aid recovery efforts but also underscores heightened scrutiny around the event.
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Blockstream said it will not pay a ransom to recover Bitcoin stolen from the Liquid Network, rejecting claims that the incident was "responsible disclosure" or "whitehat" activity. In a post on X, the company said unauthorized acquisition of assets followed by refusing to return them constitutes theft.
Blockstream added that if the funds are not returned, it will work with law enforcement, exchanges, service providers and blockchain forensics teams to trace the transactions, pursue recovery and identify those responsible using all available legal channels. The firm also noted that Bitcoin transactions are transparent and that supporting evidence will remain on record.
Blockstream is the main developer and technology provider for the Liquid Network. Liquid previously said that about 4,000 BTC were withdrawn by a "whitehat hacker," prompting the sidechain to suspend operations.
