Liquid Network attacker offers to return $320M in Bitcoin after team fixes bug

The transaction involved 4,000 L-BTC sent to SideSwap's peg-out service, which then paid 3,996 BTC to the recipient's Bitcoin address.

The white-hat hacker behind the withdrawal of about 4,000 Bitcoin from Liquid Network’s federation wallet has offered to return most of the coins once the underlying software bug is fixed.

In messages sent to Blockstream, the party told Blockstream to patch every node before transferring the funds back. Blockstream later said its bridge nodes were patched and safe for the funds to be returned, but the Bitcoin was still held by the attacker at the time of writing.

The funds, worth about $320 million when the incident was disclosed, had been withdrawn after a bug allowed the creation of L-BTC without backing, according to SideSwap. Liquid has since halted network activity and exchanges have suspended LBTC deposits and withdrawals while the incident is addressed.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

The white-hat hacker behind the withdrawal of about 4,000 Bitcoin from Liquid Network’s federation wallet has offered to return most of the coins once the underlying software bug is fixed.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.