Hackers Return $263 Million Stolen From Liquid Network
Hackers initially stole approximately $320 million worth of Bitcoin from the Liquid Network sidechain, but have since returned $262.6 million after Liquid addressed a vulnerability. The network remains paused as Blockstream and federation members work to fully resolve the issue and prevent further losses, with a portion of the stolen funds still outstanding.
Approximately $320 million worth of Bitcoin was stolen from the Liquid Network sidechain over the weekend. The incident was reported by Liquid on Sunday, following the disabling of its nodes and suspension of all transactions. The funds were drained from Liquid’s federation wallet, holding roughly 4,200 Bitcoin before the attack.
Liquid stated that exchanges have been notified and are pausing LBTC deposits and withdrawals, while other Liquid assets like USDT, DePix, and RWAs remain unaffected. The hackers, claiming to be ‘white-hat’ actors, initially demanded Liquid fix a vulnerability before returning the majority of the stolen funds.
Liquid confirmed that 3,400 Bitcoin was returned on Monday, but approximately 598 Bitcoin remains outstanding as Blockstream continues communication with the hackers. The network remains paused as Blockstream and federation members work to fully resolve the issue and prepare for a safe restart.
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