Blockstream has officially declined to pay a ransom for the remaining Bitcoin stolen from the Liquid Network. The company recovered 3,400 BTC, valued at approximately $268 million, which represents 85% of the total funds taken during the exploit.
The incident, disclosed on Sept. 6, stemmed from a bug in the Elements software, a fork of Bitcoin Core used by Liquid. This vulnerability allowed for the creation of unbacked L-BTC, which was then exchanged for real Bitcoin via the platform's peg-out mechanism.
Following the discovery, Blockstream deployed an emergency patch. While block production resumed on Sept. 10, the company kept peg-outs and various transactions suspended to facilitate ongoing recovery efforts.
Blockstream stated that the unauthorized removal of funds constitutes theft rather than white-hat activity. The firm refuses to set a precedent of paying ransoms to hackers and intends to pursue the remaining 600 BTC through lawful channels.
