TREE NEWS update: Blockstream has refused a ransom demand for the remaining 600 BTC tied to the Liquid exploit and said it will not pay. Liquid has resumed transactions, but peg-outs remain disabled as recovery work continues. The identity of the attacker and the amount of the ransom demand were not disclosed.
Blockstream Refuses Ransom Demand for Remaining 600 BTC From Liquid Exploit
Blockstream's refusal sets a precedent for how infrastructure operators handle extortion after a bridge exploit, prioritizing network integrity over a quick return to full functionality. The decision affects Liquid users most directly, since peg-outs remain disabled even as transactions resume, leaving a one-way flow that limits practical use of the sidechain. The open questions are whether recovery efforts can restore peg-outs without payment and whether the attacker's identity or the ransom figure ever becomes public.
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