Exchange Ranking
Top Exchanges
24h Volume Ranking
Popularity Ranking
Exchange BTC Balance
Proof of Reserves
Decentralized Exchanges
Funding Rate
Funding Heatmap
Liquidation Data
Max Pain
Long/Short Ratio
Whale L/S Ratio
Binance/Okex/Huobi L/S
Bitfinex Margin L/S
ETF Tracker
Solana ETF
XRP ETF
Hong Kong ETF
Bitcoin Treasuries
Crypto Reversal
Ethereum Reserves
HyperLiquid Wallet Analysis
Hyperliquid Whale Watch
Large Transactions
On-chain Movement
Bitcoin ROI
Stablecoin Market Cap
Options Analysis
News
Articles
Economic Calendar
Features
Wallet
Contract Calculator
Security
Collections
Watchlist
Following
BTC TLDR
Blockstream draws a line on Liquid Network Bitcoin issues
Liquid Network begins controlled recovery
Blockstream said it will not pay ransom to recover the nearly 598 BTC still held by attackers. The Liquid Network vulnerability on September 6 resulted in the theft of nearly 4,000 BTC from the joint reserve. Subsequently, the attackers returned approximately 3,400 BTC, or approximately 85% of the stolen funds. Blockstream has released Elements v23.3.4 to fix the vulnerability exploited in this attack. Trading on Liquid Network has resumed, but the endorsement rate for L-BTC is only about 85%. Blockstream warned that it could take legal action if the remaining bitcoins were not returned.
Blockstream refuses to pay ransom to the Liquid Network hacker group
Blockstream firmly refuses to pay any ransom to those behind the recent Liquid Network breach and emphasizes that the remaining bitcoins must be returned. The company pointed out that because the attacker obtained assets without authorization and still controlled some of the stolen funds, the incident did not meet the definition of a "white hat hacker." The current controversy focuses on nearly 600 BTC, which is still outside the control of the joint reserve.
Blockstream said it had communicated in good faith with attackers to recover user funds. However, the company made it clear that it would not pay for the return of stolen property. At the same time, Blockstream warned that if the remaining bitcoins are not returned, it may take legal action to hold accountable.
To those who stole Bitcoin from the Liquid Network:
Blockstream will never pay ransom to return stolen funds. Unauthorized acquisition of assets and seizure and return them are criminal acts, not responsible disclosure. This is not white hat behavior. This is...
- Blockstream (@Blockstream) September 11, 2026
The company points out that paying high bounties will set a bad precedent for open source developers. Blockstream believes that Bitcoin users should not be allowed to bear losses so that attackers can obtain ransom. In addition, Bitcoin cannot be generated cheaply to meet such requirements.
Review of the September 6 attack
This attack targeted the Bitcoin sidechain-Liquid Network developed by Blockstream. The attacker took advantage of a software flaw to create approximately 4,000 L-BTC out of thin air without placing matching BTC for the corresponding token. They then used SideSwap's peg-out system to withdraw real bitcoins from the joint reserve.
Prior to the attack, Liquid Network held approximately 4,200 BTC. The breach removed almost 95% of the reserves, which were worth approximately $320 million at the time. Later, approximately 3,400 BTC was returned to the Joint Reserve, leaving approximately 598.5 BTC still under the control of the attackers.
Liquid Network launches controlled recovery program
Blockstream has released Elements v23.3.4 to fix exploited vulnerabilities. Block production has resumed and online transactions are processed again. Former Blockstream executive Samson Mow also shared updates on the recovery process.
Mow said the endorsement rate for L-BTC is currently around 85%, while missing bitcoins remain outside joint reserve control. As a result, the network will continue to operate at a lower endorsement rate until it is fully restored or another solution is reached.
Blockstream points out that Bitcoin transaction records can still be seen on the public blockchain, allowing investigators to track the flow of funds. The company warned that records related to the vulnerability will remain available and could support future legal action.
At the same time, Blockstream leaves room for attackers to return remaining coins without further escalating the conflict. The company said a voluntary return could resolve the dispute and restore full endorsements of Liquid Network bitcoins held by its Joint Reserve members.
