Written by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff editor

Written by Ezra Reguerrastaff writer

Reviewed by Yohan Yunstaff editor

Blockstream rejects ransom as Liquid hackers hold nearly 600 BTC

Latest NewsPublishedSep 11, 2026

Blockstream stated it would work with law enforcement, exchanges and forensic specialists to recover the Bitcoin if the hackers do not return it.

Bitcoin infrastructure company Blockstream stated it will not pay a ransom to recover funds still held by the Liquid Network hackers.

“Taking assets without authorization and withholding their return is a crime, not responsible disclosure,” Blockstream stated Friday. “It is not white-hat activity. It is theft.”

The company stated it had engaged with the hackers in good faith to recover user funds but would not accept their demands.

The hackers demanded that Blockstream pay a 10% bounty from its own funds in an onchain message shared by Jan3 CEO and former Blockstream chief strategy officer Samson Mow on Wednesday. They warned that Liquid holders would otherwise face a 15% loss.

Blockstream urged the hackers to return the remaining Bitcoin voluntarily. If not, it stated it would work with law enforcement, exchanges, service providers and forensic specialists to trace the assets and identify those responsible. 

On Sept. 6, Liquid, a Bitcoin sidechain, paused operations after self-described white-hat hackers withdrew about 4,000 Bitcoin, then worth about $320 million, from its federation wallet.

The actors subsequently returned 3,400 BTC after Blockstream stated that affected bridge nodes had been patched, leaving about 598 BTC outstanding.

Liquid resumed block production on Thursday, producing empty blocks following emergency software updates. Transactions and Bitcoin transfers into and out of the network remained suspended.

Related: ‘White hats’ take 4000 BTC from Liquid, ETFs see best inflows of 2026: Hodler’s Digest

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• Hacks
• Hackers
• BlockStream
• Cybersecurity
• Bitcoin

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