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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
09/12/2026

Blockstream Refuses $47M Ransom Demand After Liquid Network Hack

What happened: Blockstream has publicly rejected a ransom demand from hackers who stole approximately 4,000 BTC (about $320 million) from the Liquid Network's federation wallet on September 6.

Blockstream Refuses $47M Ransom Demand After Liquid Network Hack

What happened: Blockstream has publicly rejected a ransom demand from hackers who stole approximately 4,000 BTC (about $320 million) from the Liquid Network's federation wallet on September 6. While roughly 3,400 BTC was returned following on-chain negotiations, the attackers are still holding 598.5 BTC (about $47 million). The attackers, claiming "white-hat" status, demanded a 10% "bug bounty" and criticized Blockstream's $1.5 million security budget for $5 billion in assets. Blockstream has labeled the act as theft and vowed to pursue legal avenues.

Why it matters: The incident exposes vulnerabilities in sidechain security and raises questions about the adequacy of security budgets relative to assets under management. Blockstream's refusal to negotiate sets a precedent for how major crypto infrastructure providers may respond to ransom demands, emphasizing legal recourse over capitulation. The technical root—a bug in range-proof verification—has since been patched, but the episode underscores persistent risks in federated blockchain models.

Source: Decrypt