Blockstream Declines Ransom Demand After Liquid Exploit, Resumes Transactions

Blockstream, the operator of the Liquid sidechain, has refused a ransom demand for the remaining 600 BTC tied to a recent exploit. The company announced that transaction processing on Liquid has been restored, although the ability to move assets off‑chain (peg‑outs) is still disabled as recovery work proceeds.

Ransom demand rejected

Following the exploit that resulted in the loss of Bitcoin, Blockstream was approached with a demand for a ransom to return the remaining 600 BTC. The firm publicly declined the request, stating that it will not negotiate with attackers.

Liquid network status

Transactions on the Liquid sidechain are now back online, allowing users to conduct on‑chain activity within the network. However, the peg‑out function, which enables users to transfer assets from Liquid back to the Bitcoin main chain, remains disabled while the recovery process is ongoing.

Recovery efforts

Blockstream is continuing to work on recovering the stolen funds and restoring full functionality to the network. No timeline has been provided for when peg‑outs will be re‑enabled.