Theblock.Co Blockstream Refuses Ransom for Stolen Liquid Network Bitcoin
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- •Blockstream refuses to pay a ransom for 600 BTC stolen from the Liquid Network.
- •The exploit involved a flaw in transaction-validation software, allowing the creation of unbacked L-BTC.
- •Blockstream is collaborating with law enforcement to recover the remaining stolen funds.
Blockstream has declined to pay a ransom for approximately 600 BTC stolen from its Liquid Network, following a September exploit that saw hackers withdraw around 4,000 BTC. The attackers exploited a flaw in transaction-validation software, allowing them to create unbacked L-BTC and exchange it for real bitcoin. While 3,400 BTC has been returned, Blockstream frames the incident as theft and is committed to recovering the remaining funds through law enforcement and forensic specialists. The company emphasized that taking assets without authorization is a crime and not responsible disclosure. Blockstream has also paused the Liquid Network's peg-out functionality as a precaution. The situation remains unresolved as the attackers demanded a 10% bounty for the return of the remaining funds, which Blockstream has refused.
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