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DeFi exploit wave 2026Latest of 27
Blockstream Calls It Theft

Blockstream Calls It Theft

Verified · 12 Sept 2026BitcoinSep 12, 2026

A relentless wave of DeFi exploits—spanning bridge hacks, oracle manipulation, governance attacks, and AI-accelerated vectors—is draining billions and setting record loss milestones across 2026.

Blockstream publicly refused what it characterised as a ransom demand from the Liquid Network attacker, engaging law enforcement and demanding the return of the roughly 598 BTC (~$46 million) retained after last week's exploit, per Cointelegraph and The Defiant. Security firm SlowMist's analysis detailed the attack as minting 3,998 L-BTC through the patched validation bug — the largest Bitcoin sidechain hack of 2026, per coverage. Liquid's peg-outs remain paused following the resumption of block production.

Ransom Refused: ain't no such thing as halfway crooks

The Liquid attacker kept 598 bitcoin — about $46 million — and called it a whitehat's fee.

Blockstream called it a ransom. Refused to bless it, demanded the money back and brought in law enforcement.

The attacker could have kept all 4,000 coins. They returned 3,400 because what they wanted was the half-way outcome: a thief's payout with a security researcher's reputation.

They wanted to keep $46 million — and never look over their shoulder.

So now it is a standoff of weak hands.

Blockstream cannot reach the coins. It can only keep them radioactive.

The attacker needs to find a clean exit and keep one eye open for the Feds.

Meanwhile users wait for the vault to reopen — and to learn who covers the missing 598.

5 sources