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Liquid Network Recovers 3,400 BTC After Bridge Exploit
- On Sunday, hackers withdrew roughly 4,000 Bitcoin worth about $320 million from the Liquid Network federation wallet, draining about 95% of holdings and forcing the settlement system to halt new transactions.
- The theft occurred through SideSwap, a platform authorized to process withdrawals from Liquid, rather than through theft of a cryptographic key; Liquid confirmed no Peg-out Authorization Keys were compromised.
- Identifying themselves as "purported white-hat hackers" in a blockchain message, the attackers contacted Blockstream and pledged to return "most" of the Bitcoin once the network's underlying vulnerability is fixed.
- Liquid disabled its bridge nodes while federation members investigate, asking exchanges to suspend L-BTC deposits and withdrawals; other assets including USDT were not affected by the breach.
- There is no indication the Liquid breach is connected to state-backed actors, distinguishing it from other major cryptocurrency thefts; the incident reminds users that adding Bitcoin does not guarantee security.
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Liquid Network recovers 3,400 BTC after bridge exploit
Liquid Network has recovered 3,400 BTC worth about $269.2 million from the self-described white-hat hackers behind a 4,000 BTC withdrawal, although nearly $47 million remains outstanding. Liquid Network has recovered 85% of the withdrawn Bitcoin On-chain data shows that the…
Those responsible appear to be "white hat hackers," who exploit security vulnerabilities and often return funds, sometimes in exchange for a reward.
The RegisterReposted by 
IT Security News - cybersecurity, infosecurity news
IT Security News - cybersecurity, infosecurity newsHackers drain $320M in Bitcoin from Liquid Network, claim they're the good guys
Self-described white hats promise to return 'most' of the 4,000 BTC once the vulnerability is fixed
·London, United Kingdom
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Coverage Details
Total News Sources40
Leaning Left1Leaning Right1Center5Last UpdatedBias Distribution72% Center
Bias Distribution
- 72% of the sources are Center
72% Center
14%
C 72%
14%
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