Blockstream refuses to pay ransom for stolen Bitcoin

Hackers took about 4,000 bitcoin, worth roughly $320 million, from Blockstream's Liquid Network last weekend. Most of it came back. The hackers, who call themselves white-hat researchers, returned about 3,400 bitcoin after negotiating with Blockstream. But they kept 598.5 bitcoin, worth around $46 million, calling it responsible disclosure.

Blockstream said no. On Sept. 11, the company said it won't pay any ransom for the rest of the money. "Taking assets without authorization and withholding their return is a crime, not responsible disclosure," Blockstream said. Calling yourself a white-hat hacker doesn't change what happened — someone took money that wasn't theirs. Blockstream says it will now pursue the hackers through legal and forensic means instead.

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Will Blockstream actually get the rest of its bitcoin back? Tracing stolen crypto is possible, but recovering it from someone who doesn't want to give it up is much harder. This case will test something new. Does keeping stolen funds under the banner of responsible disclosure actually work? Or does standing firm like Blockstream become the norm instead?