GoKawiilBlockstream's Liquid Network hit by $340M bitcoin exploit, most funds returned
A hacker exploited a bug in Blockstream's Liquid Network settlement system to withdraw roughly 4,000 bitcoins worth about $340 million. The attacker, described as a 'white hat,' returned around 3,400 bitcoins after Blockstream patched the flaw, but retained about 600 bitcoins worth roughly $47 million. Liquid Network has suspended operations while it implements further security fixes before resuming.
GoKawiil's interpretation of the reporting above, not reported fact.
This ranks among the largest crypto thefts recorded this year, underscoring persistent vulnerabilities in infrastructure that multiple exchanges rely on for settlement. The partial return highlights an unusual dynamic where attackers negotiate fixes rather than fully absconding, but the remaining unrecovered funds show real financial damage persists even in 'white hat' incidents.
- Roughly $340M in bitcoin was stolen from Blockstream's Liquid Network via a software bug.
- About 3,400 of 4,000 stolen bitcoins were returned after the bug was fixed; ~600 remain missing.
- Liquid Network operations stay paused pending additional security improvements.
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Published there as: “A hacker stole $340M in a crypto heist, then returned most of it”
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