Liquid Network Attacker Returns 3,400 BTC, Still Holds 598.5 BTC as L-BTC Redemptions Stay Frozen

The partial return changes the recovery math but not the structural problem: L-BTC now trades against a reserve it can no longer fully honor, and the shortfall is a solvency question rather than a ransom one. Blockstream's refusal to pay sets the precedent that issuers absorb losses instead of negotiating, which matters for every federated or wrapped-asset design where redemption depends on a single operator's willingness. The open questions are whether the remaining bitcoin moves, and whether redemptions resume before the reserve gap is closed.