Blockstream Refuses Ransom for $47M Bitcoin Stolen in Liquid Hack

Blockstream refuses ransom — Blockstream has publicly refused to pay a ransom for the return of 598.5 Bitcoin, worth approximately $47 million, stolen from its Liquid Network sidechain in a recent hack, calling the act “theft.”

The company stated it will not negotiate with the attackers and will pursue the matter through law enforcement if the funds are not returned. The stolen Bitcoin was taken from the Liquid Federation, a multi-signature consortium that secures the network’s assets.

Blockstream’s firm stance against paying ransoms aligns with common guidance from cybersecurity experts and law enforcement, who argue that payments encourage further criminal activity and do not guarantee the return of stolen assets. The company has not disclosed the specific technical details of the breach but confirmed the incident involved the federation’s multi-signature setup.

The Liquid Network, a Bitcoin sidechain designed for faster and more confidential transactions, has temporarily halted operations while the investigation continues. This incident highlights the ongoing security challenges faced by institutional-grade crypto infrastructure, even with sophisticated multi-party custody solutions.