Bitcoin infrastructure company Blockstream has ended negotiations with hackers who withdrew 4,000 bitcoins from its Liquid sidechain, declining to pay ransom for the return of the remaining funds. Hackers exploited the Liquid network, a layer-2 solution developed by Blockstream designed to facilitate fast, confidential transfers of assets backed 1:1 by bitcoin. The exploit allowed the attackers to create more than 4,000 LBTC and redeem them for actual bitcoins, resulting in the unauthorized withdrawal of roughly $320 million.