Liquid Network's BTC Heist Resolution Leaves Much Work Ahead

On February 23rd, an unusual incident occurred on the Liquid Network when hackers withdrew approximately 4,000 BTC, worth around $268.16 million at the time, leaving only a fraction of Bitcoin under Federation control.

A white-hat hacker dialogue was initiated with Blockstream, and as a result, most of the stolen Bitcoin has been returned to its rightful owners.

The hackers, during their extended on-chain dialogue, restored 3,400 BTC in block 965,950 back to the original Federation address. This significant move brought back roughly 85% of the withdrawn Bitcoin under Federation control.