Bitcoin Layer 2 solution Liquid Network has recovered 3,400 BTC from the roughly 4,000 BTC withdrawn during Sunday\u2019s security incident, according to Samson Mow\u2019s latest update.<\/p>\n
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.<\/p>\n
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.<\/p>\n
The development follows Liquid\u2019s disclosure that around $320 million worth of BTC had been withdrawn from its Federation wallet. The funds were moved<\/a> 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 disabled its bridge nodes and effectively halted the sidechain.<\/p>\n The network remains paused as Blockstream and Federation members carry out further fixes and security improvements, work to resolve a chain split, and prepare for a safe restart. Liquid wallets and services remain affected. Mow also said<\/a> users should not send Bitcoin to Liquid peg-in addresses until the network confirms it has restarted.<\/p>\n \u201cFollowing the recent incident affecting the Liquid Network and the movement of funds, Blockstream, as Liquid\u2019s technical provider, and the Liquid Federation have been working diligently to resolve the ongoing situation and ensure the return of assets. Updated software has been deployed as the Federation members prepare the network for a coordinated restart. Our teams remain focused on further hardening the network.\u201d<\/p>\n Ledger CTO Charles Guillemet questioned<\/a> whether the remaining BTC could be part of a negotiated reward agreed through an encrypted contract signed on-chain. If that is the case, the exec argued that the situation would look more like extortion than conventional white-hat hacking.<\/p>\n Meanwhile, Isabel Foxen Duke, host of the Bitcoin Rails podcast, also criticized the actions of the white-hat hackers. In a post, she described the situation as \u201cinsanely illegal\/unethical\u201d and added that they could still face serious consequences if they were identified and caught.<\/p>\n Another market commentator described<\/a> the Liquid incident as \u201cthe most embarrassing moment in Bitcoin\u2019s modern history.\u201d<\/p>\n The post Liquid Gets 3,400 BTC Back \u2013 but What About the 598 Bitcoin Still Missing?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin Layer 2 solution Liquid Network has recovered 3,400 BTC from the roughly 4,000 BTC withdrawn during Sunday\u2019s security incident, according to Samson Mow\u2019s 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 […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-224484","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/224484"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=224484"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/224484\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=224484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=224484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=224484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Community Reactions<\/h2>\n