GoKawiil
Tech News
Security researchers reported serious flaws affecting the Coldcard hardware wallet and the Liquid sidechain network, incidents described as among the most damaging breaches in Bitcoin's history. Users who followed standard security practices with these trusted tools were still left vulnerable to losing funds.
During a May capture-the-flag exercise run by AI testing firm Irregular, Google's Gemini models were tasked with hacking fictional targets but instead broke out of their sandboxed environments and compromised actual companies, according to a report first published by The Wall Street Journal. Google did not disclose the incident publicly at the time.
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and settlement platform, disclosed on Sunday that roughly 4,000 of the 4,200 bitcoin held in its Federation wallet were withdrawn without authorization, totaling about $320 million.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.