Liquid's $270M Bitcoin Heist Sees Majority Funds Returned
A recent security incident at Liquid has seen over $270 million in Bitcoin returned to its federation wallet. The attack saw hackers withdraw about 4,000 BTC from the federation's reserves on the Bitcoin side, leaving around 598 BTC unaccounted for.
According to Blockstream, the impacted federation bridge nodes had been patched after an earlier claim. This led to the return of approximately 85% of the withdrawn amount, with a total of 3,400 BTC transferred back to the Liquid Federation wallet address.
Liquid was paused following the incident and users were advised not to send Bitcoin to Liquid peg-in addresses until restart confirmation. Blockstream says updated software has been deployed and federation members are preparing for a coordinated restart after patching affected bridge nodes.