Liquid Network hacker demands 10% bounty to return remaining 600 BTC

The attacker tied to the breach of Blockstream's Liquid Network is demanding a payout equal to 10% of the 600 BTC that remains outstanding, according to reports. The hacker is said to have framed the return of the coins as contingent on receiving the bounty. Liquid Network is a Bitcoin sidechain developed by Blockstream, used by exchanges, institutions, and traders to settle transactions faster and with greater privacy than on Bitcoin's main chain. Because the network holds pooled reserves for multiple participants, a security incident can affect parties beyond a single firm. In reported communications, the attacker used aggressive language toward Blockstream, calling the company "delusional, greedy, and arrogant." The remarks suggest negotiations have become confrontational, with the two sides split on what constitutes an acceptable settlement. Bounty-style negotiations after crypto thefts are common. Projects sometimes offer a portion of stolen assets as a "whitehat" reward rather than treating the payment as a ransom, arguing it can be faster and less costly than extended litigation or relying on law enforcement recovery. The approach can also create incentives for future attackers by normalizing negotiation as an exit path. The fact that 600 BTC is still unresolved indicates some of the stolen funds may have already been recovered, frozen, or otherwise accounted for. Current reports did not specify the original amount stolen or the timeline of any partial recoveries. There has been no report of Blockstream publicly accepting the 10% demand. The attacker's tone points to dissatisfaction with counteroffers or the pace of talks. Such disputes can persist for months as both sides weigh reputational and legal risks, along with the difficulty of tracing or freezing bitcoin once it moves across wallets or through mixers. For Blockstream, the episode carries added significance given its position in Bitcoin infrastructure and security tooling. Institutional users rely on Liquid Network's reputation for secure settlement, and a prolonged unresolved incident can raise questions about custody controls and incident response. Market impact: A public standoff typically increases scrutiny of a platform's security practices and may affect institutional confidence in sidechain settlement products. Liquid Network's role in supporting exchange and OTC desk activity means extended uncertainty could lead some participants to reassess counterparty and custody risk. The broader bitcoin market is unlikely to see a direct price impact from a dispute of this size, but the episode adds to industry debate over how infrastructure providers should handle hacker negotiations when demands become public. FAQs - What is Liquid Network? A Bitcoin sidechain built by Blockstream that enables faster, more private settlement for exchanges and institutional traders. - What is the hacker demanding? A bounty worth 10% of the remaining 600 BTC in exchange for returning the funds. - Has Blockstream agreed? There is no report that Blockstream has publicly agreed to the 10% figure. - Why do companies pay bounties? They can provide a quicker, cheaper recovery path than legal action, though they may also encourage future attacks. Originally reported by AltcoinGordon; written by Ethan Mercer; republished with permission.