Blockstream refuses ransom demand from Liquid exploit attackers holding ~600 BTC as the network resumes transactions with peg-outs still disabled.
Security & Exploits ·
Blockstream has declined a ransom demand from attackers who retained approximately 600 BTC following an exploit affecting the Liquid network. The company publicly called for the return of the remaining funds rather than negotiate with the threat actors. The incident prompted a temporary halt to network operations as Blockstream worked to contain the breach.
Liquid has since resumed transaction processing, though the network maintains restrictions on peg-outs—the mechanism by which assets move between Liquid and the main Bitcoin blockchain. This selective re-enablement reflects an ongoing recovery effort while preventing further movement of compromised funds off the sidechain.
It remains unclear whether the attackers will respond to Blockstream's public rejection or what recovery timeline the company expects for full network restoration, including peg-out functionality.