Liquid's Bitcoin Reserves Recover $270M After Security Incident

A recent security incident on Liquid's Bitcoin reserves has seen white-hat actors return 3,400 BTC worth approximately $270 million to the federation wallet. This comes after Blockstream confirmed that affected bridge nodes had been patched.

According to JAN3 CEO and former Blockstream executive Samson Mow, about 598 BTC remains outstanding. He added that Blockstream is still engaging with the actors while Liquid prepares to resume operations.

The incident occurred on Sunday when hackers withdrew approximately 4,000 BTC from the federation wallet's Bitcoin-side reserves, leaving the system with a reduced buffer for issuing or supporting L-BTC.