Blockstream and Attacker Resolve Dispute Over 3,998.50 BTC

Blockstream and an attacker have resolved a dispute over 3,998.50 BTC, with the attacker sending most of it back to Blockstream.

The attack occurred on Sunday when a customer sent 4,000 L-BTC to SideSwap's peg-out service, which was then used to drain the Liquid federation wallet of 3,996 BTC.

Blockstream later established that the L-BTC in the order was created through a bug in the Elements software and not due to any compromise of their systems or key.

The attacker eventually broadcast a transaction sending 3,400 BTC back to Blockstream's federation wallet and keeping 598.50 BTC for themselves, worth around $47.2 million at current prices.