"Return the bitcoin," Blockstream told those responsible for the Liquid Network exploit on Friday, saying it would not pay a bounty for the remaining 598.5 BTC.
Blockstream said it had tried to secure the return of the funds in good faith but rejected the terms being demanded. "Taking assets without authorization and withholding their return is a crime, not responsible disclosure," the Adam Back-founded Bitcoin infrastructure firm said. "It is not white-hat activity. It is theft."
"We will not be a party to the precedent that open-source software developed for the good of the Bitcoin community should subject its developers to paying a ransom that far exceeds their economic participation," Blockstream added, thanking the Bitcoin community for its support.
The company said the attacker still had an opportunity to resolve the situation and return the bitcoin (BTC). However, if the funds are not returned, it said it will work with law enforcement, exchanges, service providers, forensic specialists, and other parties to trace and recover the assets and identify those responsible.
"Transactions do not disappear, and neither does the evidence they leave behind," Blockstream added. "We will not pay for the return of stolen property. We will not abandon our users. The Bitcoin community will not stop pursuing the funds."
