The Liquid Network suffered a major incident in which nearly 4,000 bitcoin were withdrawn from its federation wallet, prompting a pause of the sidechain and concern over L-BTC backing. After on-chain negotiations, 3,400 bitcoin were returned, while about 598.5 bitcoin remains unreturned amid debate over whether the actors were white hats or extortionists. #LiquidNetwork #Blockstream #L-BTC #SideSwap #Elements #JAN3
Keypoints
- Nearly 4,000 bitcoin were taken from the Liquid Network federation wallet.
- About 3,400 bitcoin were returned the next day to a Liquid Federation address.
- Roughly 598.5 bitcoin remains unreturned and is still tied to the same transaction change.
- Blockstream said the Peg-out Authorization Key and other keys were not compromised.
- The incident involved on-chain messages, a possible Elements flaw, and an ongoing restart of Liquid nodes.
Read More: https://thehackernews.com/2026/09/liquid-hackers-return-3400-bitcoin.html