Blockstream Refuses to Pay Ransom to Liquid Attacker

Blockstream said it will not pay a ransom to the Liquid attacker and described the unauthorized taking of assets followed by refusal to return them as theft, not responsible disclosure or white hat behavior. According to Foresight News, the company said it has tried to encourage the return of user funds through communication, but it will not accept the conduct or the demands, and it will not let open-source software developers bear a ransom far beyond their level of economic involvement. Blockstream said Bitcoin can be returned and should meet the standards of white hat principles. If the stolen funds are not returned, the company said it will work with law enforcement, exchanges, service providers, and forensic experts to trace and recover the assets through all legal means and identify those responsible. The Liquid attacker posted on-chain on September 9, accusing Blockstream of severely insufficient security spending and demanding that Blockstream use its own funds to pay a 10% bounty, or holders would suffer a 15% loss because of what the attacker called the company’s irresponsibility and stinginess. Bitcoin News previously reported that the Liquid attacker had returned about 3,400 BTC, with about 600 BTC still pending return.