Liquid Network gets back 3,400 bitcoin from white-hat hackers; talks underway for the rest
Liquid Network, a Bitcoin sidechain, is recovering from a major hack that saw 4,000 BTC stolen. White-hat hackers have returned 3,400 BTC, and negotiations are ongoing for the remaining funds while the network remains paused for security fixes.
Why it matters
The incident highlights the ongoing security vulnerabilities in decentralized finance and the unique role of 'white-hat' hackers in crypto-asset recovery.
The white-hat hackers have returned 3,400 of the 4,000 BTC they drained on Sunday, and about 598 BTC, worth roughly $47 million, is still outstanding, according to information shared by Liquid’s Samson Mow.
Liquid Network, a Bitcoin sidechain built by Blockstream, was hit on Sunday when attackers withdrew 4,000 BTC, worth $320 million, from the federation wallet that backs its token, L-BTC. The network is designed as a faster, more private settlement layer on top of Bitcoin. A federation of companies runs it, and every L-BTC is supposed to be matched one-for-one with real bitcoin locked in a shared wallet.
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