Blockstream, a Bitcoin and digital asset infrastructure, posted on social media platform X today, September 11, 2026, and stated that it is taking a firm stance against paying any ransom to get back the Bitcoin stolen from the Liquid Network and the company is calling the incident a crime rather than any kind of responsible disclosure. The company also stated that it tried to work in good faith with those controlling the stolen Bitcoin but made it clear it would not pay for the return. This comes after a major hack of the Liquid Network, which saw about $320 million in Bitcoin withdrawn.
Meanwhile, Liquid Network has moved forward with its recovery efforts. In the update posted on September 10, 2026 at 19:55 UTC, block production is back up and functionary nodes are signing and validating blocks. Transactions are working, but peg-outs are still disabled as a safety measure while recovery continues.
Blockstream Rejects Ransom Demand
Blockstream said it refuses to pay a ransom for the stolen Bitcoin. The company believes taking assets without permission and then demanding payment for their return is not white hat behaviour. Blockstream said it has tried to get the stolen funds back and to shield the wider Bitcoin community. Still, it stressed that these efforts do not mean it accepts what happened or the terms being set.
The company also rejected what it sees as a precedent, one where developers of open-source software get forced to pay ransoms way larger than their share in a project. Blockstreams linked its position to the larger Bitcoin principles, arguing that Bitcoin is hard money and cannot be conjured on demand or used to fund ransom payments. Blockstream’s statement also addressed the wider Bitcoin community, thanking those who have worked to patch vulnerabilities, help users recover funds, and make the network more secure.
Stolen Bitcoin and the Remaining Funds
This all started with an exploit that let supposed white hat hackers take about 4,000 BTC from the Liquid Network’s total reserve of around 4,200 BTC. The stolen coins were worth about $320 million at the time. The attackers later gave back 85% of what they took. In one transaction, 3,400 BTC returned to Liquid, while roughly 600 BTC ended up as ‘change’ at an address controlled by the actors.
The leftover sum of about $47 million as of Tuesday has not been returned. In its latest statement, Blockstream says there is still a chance for the Bitcoin to come back the right way. But it is also warning that if the funds stay gone, the company will use every legal option available. Those efforts could involve law enforcement, exchanges, service providers, forensic teams, and other relevant groups. Blockstream also pointed out that Bitcoin transactions are transparent and can be tracked.
Liquid Network Restarts with Peg-Outs Disabled
While the question of the remaining Bitcoin is unresolved, the Liquid Network is getting back online. In its September 10 update, the network said block production is up and functionary nodes are now signing and validating blocks. Transactions have resumed, but peg-outs remain disabled for now. The network says they are keeping this safeguard while recovery happens.
Liquid is also putting its system through serious testing, using AI assisted code scans and constant monitoring by internal and external teams. The network said it would share more about when peg-outs will return as soon as it has an update. For users, there are no steps to take at the moment. But Liquid node operators are being told to upgrade immediately to Elements v23.3.4.
Warning Over Scams
The recovery period has also triggered scam attempts. Liquid reported that scammers are trying to take advantage by creating fake update websites and sending fraudulent messages. Users are being told to stick with official channels: Liquid Network, Blockstream Jade, and Blockstream for all information. The warning makes it clear: do not send funds to unknown addresses, transfer assets through shady channels, or reveal private keys or seed phrases after getting unsolicited messages.
The Liquid Federation and Blockstream thanked the wider Bitcoin community for their ongoing support through the recovery. For now, transactions are back up but peg-outs are still on hold while Blockstream keeps insisting the rest of the stolen Bitcoin should come back without any ransom being paid.
