Liquid Hack Leaves Bull Bitcoin Users Facing Potential 30-Day Wait for BTC Conversion
A hacker attack on the Liquid Network in early September has left users of the Canadian exchange and wallet company Bull Bitcoin facing a potential 30-day wait to convert their L-BTC back into BTC. The attack, which occurred on Sept. 6, saw nearly 4,000 BTC siphoned from the protocol, with around 3,400 returned by 'white hat' hackers after negotiations.
The attackers retained 598.50 BTC, valued at just over $51 million. Blockstream, the company behind the Liquid Network, has paused L-BTC peg-outs since the attack and is still working to resolve the situation with its partners and federation members.
Bull Bitcoin told customers that it relies on the L-BTC peg-out mechanism to balance inventories and has disabled inbound Lightning Network payments until the issue is resolved. The company also stated that, based on available information, it expects Liquid swap and exchange services allowing users to convert their L-BTC to BTC could resume within 30 days.
The prospect of a long wait for L-BTC holders to access their funds has sparked frustration among some users, with one person commenting that the reputation of the Liquid Network is at risk. Others have expressed anger and disappointment, with one user writing 'Liquid is f***ed. Forever.'