Liquid Network Hacked for $400M: 85% of Stolen Bitcoin Recovered

The Liquid Network suffered a major security breach on September 6, 2023, after attackers exploited a flaw in its Elements software.

The exploit allowed roughly 4,000 unbacked LBTC tokens to be minted and converted into real bitcoin through the network's peg-out system.

Blockstream confirmed that most of the stolen funds have been recovered, but the network remains offline while a patch is finalized.

According to Blockstream, no private keys were compromised during the attack, and the Liquid Federation's functionary nodes operated normally throughout the incident.