Liquid Network Recovers 3400 BTC, But 598 Still Missing
Bitcoin Layer 2 solution Liquid Network has experienced significant security issues after around $320 million worth of BTC was withdrawn from its Federation wallet. The funds were moved using the SideSwap PAK, but the Peg-out Authorization Key itself had not been compromised.
The white-hat hackers who claimed responsibility for the incident initially told Liquid that they would return the funds after a network issue was fixed. They warned that the chain remained at risk and urged Blockstream to patch every node before safely transferring the Bitcoin back.
Around 3,400 BTC has been recovered so far, but approximately 598 BTC remains outstanding. Blockstream is still engaging with the parties who claimed to be white-hat hackers to resolve the issue and return the remaining funds.