Liquid Network Resumes Transactions Amid Ongoing Hack Attack
Liquid Network transactions resumed on Thursday after a white-hat hacker drained nearly 4,000 BTC from its federation wallet. The attack occurred on Sunday, September 6, when hackers withdrew about 95% of the wallet's ~4,200 coin balance, worth around $320 million at the time.
The hacker claimed to be a white hat and returned most of the stolen funds, leaving behind approximately 600 BTC, valued between $46 million to $47 million depending on current prices. Blockstream's sidechain Liquid resumed block production after patching its Elements software to prevent the creation of invalid L-BTC.
Adam Back, Blockstream founder and CEO, reassured holders that the L-BTC peg will be honored one-for-one when peg-outs reopen. However, he did not provide a timeline for restoring peg-in and peg-out services or explain how the ~600 BTC shortfall would be covered.