Blockstream Refuses Ransom After $320M Liquid Network Hack
What happened: Blockstream declined to pay a ransom to hackers who drained approximately 4,000 BTC (about $320 million) from the Liquid Network’s federation wallet on September 6, 2026.
What happened: Blockstream declined to pay a ransom to hackers who drained approximately 4,000 BTC (about $320 million) from the Liquid Network’s federation wallet on September 6, 2026. After security patches were implemented, the attackers—who self-described as white-hats—returned 3,400 BTC, leaving 598.5 BTC (about $47 million) unrecovered. The breach was traced to a cache-key collision in confidential-transaction verification logic.
Why it matters: The incident highlights persistent vulnerabilities in cross-chain and federated blockchain systems, even among established infrastructure providers. Blockstream’s refusal to negotiate with attackers sets a precedent, but the partial return of funds and the disputed "white-hat" characterization raise questions about incentives and security norms in the crypto ecosystem.
Source: Cointelegraph, DailyCoin