Liquid Gets 3,400 BTC Back – but What About the 598 Bitcoin Still Missing?

Most withdrawn Bitcoin has returned to Liquid after network patches, but nearly 600 BTC remains with the alleged white-hat hackers. Bitcoin Layer 2 solution Liquid Network has recovered 3,400 BTC from the roughly 4,000 BTC withdrawn during Sunday’s security incident, according to Samson Mow’s latest update. The supposed white-hat hackers had previously told the Adam Back-led company that the funds would be returned after the network issue was fixed. In their message, they warned that the chain remained at risk and urged Blockstream to patch every node before they would safely transfer the Bitcoin back. Network Still Paused The funds were returned after Blockstream confirmed that the affected bridge nodes had been patched. Around 598 BTC remains outstanding, and Blockstream is still engaging with the parties who claimed to be white-hat hackers. The development follows Liquid’s disclosure that around $320 million worth of BTC had been withdrawn from its Federation wallet. The funds were moved using the SideSwap PAK, while the Peg-out Authorization Key itself had not been compromised. Exchanges subsequently paused or prepared to pause LBTC deposits and withdrawals, while Liquid disabl...