3,400 BTC Returned to Liquid Network After Security Fix
- A total of 3,400 BTC, valued at approximately $268 million, was returned to the Liquid Network federation address.
- Around 598.5 BTC, worth about $47 million, remains unreturned at a linked address.
- The incident occurred on September 6, when about 4,000 BTC was withdrawn due to a vulnerability in the SideSwap PAK mechanism.
- Blockstream has deployed updated software but has not yet resumed normal operations of the Liquid Network.
- The party that returned the funds identified themselves as “ethical hackers” and communicated their readiness to return assets after confirming security fixes.
Following a significant security breach, Blockstream confirmed that most of the stolen bitcoin has been returned, although operations remain suspended as further security measures are implemented. The remaining funds have not been publicly confirmed as a reward for discovering the vulnerability.
With 85% of the stolen bitcoin now back in custody, the Liquid Network is preparing for a coordinated restart while ensuring enhanced security protocols are in place.(Source)
