Blockstream - GoKawiil

Blockstream'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.

techcrunch.com · 2026-09-08

Attackers empty 95% of Liquid Network's federation wallet, claim white-hat intent

Blockstream's Liquid Bitcoin sidechain confirmed that hackers withdrew about 4,000 BTC—roughly 95% of its federation wallet, worth roughly $320 million—on September 6. The attackers embedded an on-chain message calling themselves 'whitehats,' asking Liquid to patch the vulnerability before they return the funds, and Liquid has since suspended transactions while shifting communication to an encrypted channel.

tomshardware.com · 2026-09-08