Bitcoin
Attackers Return 3,400 Bitcoin Following Liquid Network Sidechain Exploit
Perpetrators of a bridge attack on the Liquid Network returned 85% of the seized funds after Blockstream issued security updates.
Attackers returned 3,400 Bitcoin on Monday after extracting approximately 3,998 BTC from the Liquid sidechain over the weekend. Liquid, an infrastructure network developed by Blockstream, allows participants to lock BTC on the main chain to transact with L-BTC tokens.
The return occurred after Blockstream complied with the perpetrators' terms by applying a software patch across bridge nodes and verifying the update through a signed transaction message on the Bitcoin network. The return transfer was recorded in block 965,950 at 19:09 UTC.
Roughly 598.5 BTC, worth approximately $47 million at a prevailing price of $79,100, remains under the attackers' control. Ledger Chief Technology Officer Charles Guillemet publicly questioned whether the incident constituted white-hat activity or extortion given the retained sum. Blockstream paused bridge operations and requested that exchanges halt L-BTC transactions, without confirming when full bridge services will resume.
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