Crypto
Liquid Network Pause: Hackers to Return Funds Amid Uncertainty Over L-BTC Value
The Liquid Network has been put on pause after hackers exploited a bug and drained approximately 4,000 BTC from its federation wallet. The network's native currency, L-BTC, is now backed by only 4.7% of the required assets.
The attackers, who claim to be a 'white hacker,' have stated they will return the funds once the bug is fixed. Blockstream, the team behind Liquid Network, has confirmed that bridge nodes are patched and it's safe for the hackers to return the funds.
L-BTC holders face uncertainty about the value of their assets when the network reopens. Some experts argue that a sidechain token like L-BTC remains a distinct asset with its original limited supply, while others warn that an inflation bug could render L-BTC worthless.