During the development of the security incident with the Liquid Network, the attackers responsible for the unauthorized withdrawal of funds partially compensated for the damage. 3400 BTC out of the 4000 BTC previously stolen have been returned to the federation wallets. Approximately 598 BTC remain in the hackers' possession, equivalent to about $47 million at the current exchange rate.
This step raises questions about the attackers' motivation, but for the Liquid ecosystem, it is a positive signal that reduces pressure on reserves and user trust in the network.
Technical aspects and current measures
The Blockstream team, together with federation participants, is actively working to eliminate the vulnerability that led to the exploit. The key task is to normalize the state of the chain and restore full backing for L-BTC tokens. Work is currently underway to resolve the issue of chain split, which is critical for network stability and preventing further discrepancies in the ledger.
Users are strongly advised to temporarily refrain from sending bitcoins to deposit addresses on the Liquid network. This is a temporary measure aimed at preventing potential losses and ensuring transaction integrity during the period of technical work.
This incident highlights the importance of multi-layered security in sidechains and the need for constant code auditing. The return of funds is a rare but encouraging precedent that could soften negative market perception. However, fully restoring trust will require transparent reports on the causes of the hack and enhanced protective measures in the future.