Crypto

Liquid Network Hackers Return 85% of Stolen Bitcoin, 15% Still Missing

Guavy AI Editorial Team Published September 8, 2026

Instruments

BTC

Yesterday, a group of self-proclaimed 'ethical hackers' returned 3,400 BTC to the Liquid Network federation address. This move comes after Blockstream fixed a vulnerability in its bridge nodes.

The incident occurred on September 6, 2026, when approximately 4,000 BTC worth $320 million was withdrawn from the federation wallet via the SideSwap PAK mechanism.

Blockstream attributed this withdrawal to a bug in the Elements software, while SideSwap suggested that it was due to an issue with the L-BTC used for peg-out. The hackers communicated with Blockstream through on-chain messages and stated their intention to return most of the assets once the vulnerability was fixed.

The return of 3,400 BTC is valued at approximately $268 million. Despite this significant move, about 598.5 BTC worth around $47 million remains under the control of the hackers.

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