Liquid Network Resumes Operations After Massive Hacking Incident

The Liquid Network sidechain has resumed block production after being hacked for nearly 4,000 BTC. The incident occurred on Sunday when an exploit allowed a white-hat hacker to withdraw the funds from the federation wallet.

After the hack, Blockstream worked with the hacker via on-chain messages and was eventually able to recover 3,400 BTC. However, the hacker kept nearly 600 BTC and is demanding a 10% bounty for its return.

Blockstream has pledged to cover all L-BTC 1:1, reassuring users that their assets are secure. The company is working to patch system vulnerabilities and restore peg-out operations as soon as possible.