Hacker Steals $340 Million in Bitcoin from Liquid Network, Returns Majority After Bug Fix

Liquid Network, a settlement layer launched by Blockstream in 2018 and used by multiple cryptocurrency exchanges, experienced a significant security breach resulting in the theft of around 4,000 bitcoins, valued at roughly $340 million. The incident was disclosed by Liquid Network on social media, describing the perpetrator as a "white hat" hacker who exploited a software vulnerability in the network's wallet. The hacker reportedly demanded that Blockstream address the bug before returning the stolen funds. Following the company's prompt fix, approximately 3,400 bitcoins have been recovered and returned. However, about 600 bitcoins, worth nearly $47 million, remain in the hacker's possession. Samson Mow, a former executive at Blockstream, confirmed that Liquid Network's operations will stay suspended until further security enhancements are implemented. This pause aims to prevent similar incidents and ensure the platform's integrity before resuming services. This event stands as one of the largest cryptocurrency thefts recorded this year, highlighting ongoing security challenges in the digital asset space. The incident underscores the importance of robust security measures and swift responses to vulnerabilities in blockchain networks.