Liquid Network Hit by $320 Million Hack, Whitehat Claimants Return 85% of Stolen Funds

The Liquid Network, Bitcoin's layer-2 privacy side chain, suffered a significant exploit over the weekend. Hackers stole approximately 4,000 BTC (around $320 million), which accounts for about 95% of its total reserves.

The attackers, who claimed to be 'whitehats,' have partially redeemed themselves by returning around 85% of the stolen funds, roughly 3,400 BTC or about $272 million. This move has somewhat alleviated concerns over a potential depegging crisis.

However, the risks of a depegging remain substantial due to the significant loss of assets and the uncertainty surrounding the remaining balance of funds. The situation highlights the ongoing challenges faced by decentralized finance (DeFi) platforms in maintaining security and stability.