White-Hat Hackers Return $270M to Liquid Federation After Security Incident

A recent security incident on the Liquid sidechain resulted in hackers withdrawing approximately $320 million from its reserves. However, in a surprising turn of events, 'white-hat' hackers returned around $270 million to the Liquid Federation wallet.

The return of funds followed confirmation that affected bridge nodes had been patched by Blockstream, which deployed updated software and federation members prepared for a coordinated restart of the paused network.

According to onchain records, 3,400 BTC was transferred back to the federation's wallet address, restoring about 85% of the backing removed in the incident. The remaining $50 million is still under the control of the hackers, who claimed to be white hats but have been questioned by some experts.