Blockstream Issues Firm Declaration on Liquid Network Breach

In response to the recent theft of Bitcoin from the Liquid Network, Blockstream has released a stern public statement, outlining its uncompromising stance towards the perpetrators.

Ransom Flatly Denied, Incident Labeled as Theft

The statement leaves no room for ambiguity: Blockstream “will not pay a ransom to the hackers.” The company categorically defined the incident as an act of asset theft, dismissing any notion of it being “white-hat” security research. This clear delineation aims to shatter any expectation that illicit profits can be gained through extortion.

Engagement ≠ Endorsement: Preventing a Dangerous Precedent

Blockstream clarified that its earlier communications with the hackers were conducted solely in an effort to “recover user funds.” The firm explicitly stated that this engagement in no way legitimizes the attackers’ actions or their ransom demands. “We will not set a precedent where open-source Bitcoin developers are forced to pay substantial ransoms to criminals,” the declaration reads, underscoring its commitment to preserving a healthy industry ecosystem.

Final Warning and Comprehensive Recovery Strategy

A final opportunity was extended to the hackers: return the stolen Bitcoin promptly to open a dialogue under white-hat principles. Should they refuse, Blockstream outlined a comprehensive recovery plan:

  • Multi-Party Coordination: Collaborate with global law enforcement agencies, major cryptocurrency exchanges, and specialized on-chain forensic investigators.
  • Legal Avenues: Employ all available legal tools to trace the funds and identify the responsible parties.
  • Technical Leverage: Utilize the transparent and immutable nature of Bitcoin’s transaction ledger, supported by the top-tier cryptographic and engineering talent within the Bitcoin community, to persistently pursue the stolen assets.

This signals that the hackers would face a coordinated pursuit network blending technical, legal, and industry resources.

Gratitude to Community and Core Principle Reaffirmed

Concluding the statement, Blockstream expressed gratitude to the Bitcoin community for its collective efforts to strengthen the network and protect user assets. The company firmly reiterated its guiding principle: “Crime should not pay.” This serves not only as a response to this specific incident but also as a clear warning to all potential bad actors within the broader cryptocurrency ecosystem.