Blockstream has refused to pay a 10% bounty demanded by the holders of roughly 598.5 BTC still missing from Liquid Network reserves, saying it will cover the shortfall needed to maintain L-BTC's 1:1 peg with Bitcoin. Chief Executive Adam Back said the commitment removes the attackers' leverage, which rested on a threat that Liquid holders would otherwise absorb a 15% loss. About 3,400 BTC was returned on September 7 after nearly 4,000 BTC left the federation wallet on September 6 through an Elements software flaw that enabled unbacked L-BTC to be exchanged for Bitcoin. Liquid resumed block production on September 10, while peg-in and peg-out operations remain suspended. Blockstream said it will seek the remaining funds through lawful channels if they are not returned, working with law enforcement, exchanges, service providers and forensic specialists.