Hackers Return $270 Million in Bitcoin to Liquid Federation
- Purported white-hat hackers returned 3,400 Bitcoin valued at approximately $270 million to the Liquid Federation wallet.
- The return follows a security incident where around 4,000 BTC was withdrawn from the wallet’s reserves of roughly 4,200 BTC.
- About 598 BTC remains outstanding as Blockstream continues discussions with the actors involved.
- Blockstream has confirmed that affected bridge nodes have been patched and is preparing for a network restart.
- The original withdrawal was processed through SideSwap’s Peg-out Authorization Key, which was not compromised according to both Liquid and SideSwap.
The return of about 85% of the withdrawn Bitcoin helps restore much of the backing for L-BTC issued against Bitcoin held by its federation as they prepare to resume operations.
This incident highlights ongoing security challenges within cryptocurrency networks, with 4,000 BTC initially taken before a significant portion was returned.(Source)
