GoKawiil
Tech News
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.
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.
Liquid Network, a Bitcoin-based payments and settlement platform, disclosed on Sunday that roughly 4,000 of the 4,200 bitcoin held in its Federation wallet were withdrawn without authorization, totaling about $320 million. The network described the perpetrators as "purported white-hat hackers" and warned that user wallets on the platform would be affected by the breach.