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Blockstream recovers 85% of stolen BTC, refuses $47M ransom to avoid setting a dangerous precedent

Market News
11 Sep 2026
Crypto Briefing
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Neutral
Blockstream recovers 85% of stolen BTC, refuses $47M ransom to avoid setting a dangerous precedent

Blockstream recovered about 3,400 BTC from the 4,000 BTC stolen in a Liquid Network exploit but refuses to pay the $47 million ransom demanded for the remaining 598.5 BTC. The exploit exploited a software bug in the Elements codebase, allowing attackers to create unbacked L-BTC and swap it for real BTC without compromising the federation's signing keys. Blockstream views paying ransom as encouraging theft negotiation and has engaged law enforcement to recover the rest legally. This incident highlights the risks in crypto security and the company's stance against rewarding attackers.

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