Market Incident
Public · Developing
'Return the Bitcoin': Blockstream Draws Line After 4,000 BTC Hack
A group stole nearly 4,000 BTC from Blockstream's Liquid Network, then returned 3,400 BTC, kept about 598 BTC, and demanded a 10% bounty. Blockstream refused to pay, calling the theft criminal rather than legitimate security research.
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Updated:
What happened
Blockstream, the company behind the Liquid Network, reported that a hacker stole about 4,000 Bitcoin from their system. The attacker then returned roughly 3,400 Bitcoin but kept around 598 and asked for a 10% reward. Blockstream refused to pay, called the act theft, and said it will involve law enforcement.
Global impact / market context
This event shows that even companies built around Bitcoin can be hacked. The refusal to pay the ransom means the remaining stolen Bitcoin may not come back. It also signals that the company considers such actions as crimes, not helpful research, which could affect how other hackers and companies interact in the future.
What to watch
- Check whether the remaining 598 Bitcoin are returned by the hacker after the vulnerability is fixed, because that determines if the incident is fully resolved.
- Watch for any public statements from law enforcement agencies, since Blockstream said it would involve them if the funds are not given back.
- Monitor whether the Liquid Network makes any technical changes or fixes to prevent another hack, as the hacker said they would return the Bitcoin after the vulnerability is fixed.
Evidence
- Dailycoin — Blockstream Rejects Ransom After 4,000 BTC Liquid Network Hack
- Bitcoin.com — 'Return the Bitcoin': Blockstream Draws Line After 4,000 BTC Hack
- Decrypt — Blockstream Refuses Ransom for Return of $47M in Bitcoin from Liquid Hack: 'It Is Theft'
- X - WatcherGuru — JUST IN: 4,000 Bitcoin worth $320 million withdrawn following Liquid Network hack. The hacker is now communicating with network maintainers through on-chain Bitcoin transactions & intends to return the $BTC after the vulnerability is fixed.
- Incident timeline — Blockstream Rejects Ransom After 4,000 BTC Liquid Network Hack
- Incident timeline — 'Return the Bitcoin': Blockstream Draws Line After 4,000 BTC Hack
- Incident timeline — Blockstream Refuses Ransom for Return of $47M in Bitcoin from Liquid Hack: 'It Is Theft'
- Incident timeline — JUST IN: 4,000 Bitcoin worth $320 million withdrawn following Liquid Network hack. The hacker is now communicating with network maintainers through on-chain Bitcoin transactions & intends to return the $BTC after the vulnerability is fixed.