Hackers steal $320M in bitcoin from Liquid Network, return most of it after patch

siliconangle.com Sep 8, 2026

Hackers steal $320M in bitcoin from Liquid Network, return most of it after patch

Curated by Shubham · TechCapsules · Sep 8, 2026

AI-summarised brief · reviewed before publication

Hackers stole approximately $320 million in bitcoin from the Liquid Network over the weekend by exploiting a vulnerability in the Elements open-source project. The attackers utilized the peg-out authorization key to access SideSwap, the system managing deposits and withdrawals. Although the maintainers claimed the key itself was not compromised, the flaw allowed the theft of 4,000 bitcoin, representing 95% of the network’s reserve. In an unusual development, the hackers returned most of the stolen funds earlier today. They retained 598 bitcoin, valued at roughly $47 million, citing it as a bounty for exposing the security issue. The Liquid Network, launched in 2018 by Blockstream Inc., operates as a layer two Bitcoin sidechain. It relies on a centralized workflow involving about 80 organizations to verify transactions, differing from Bitcoin’s decentralized node verification. Other cryptocurrencies on the sidechain remained unaffected by the breach.

💡 Why It Matters

· The partial return of funds challenges the typical narrative of irreversible crypto theft, suggesting attackers may prioritize exposure over pure profit.
· This incident exposes critical risks in centralized sidechain architectures that depend on limited validator groups for security.

Read full article on siliconangle.com

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analyticsinsight.net · Sep 8

Can Bitcoin be Hacked by Quantum Computers? Understanding the Quantum Threat to…

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thehackernews.com · Sep 8

Slim Spider Steals Crypto Custody Secrets From Brazilian Financial Institution

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techcrunch.com · Sep 8

A hacker stole $340M in a crypto heist, then returned most of…

A hacker stole roughly $340 million in bitcoins from Liquid Network’s wallet, a settlement platform used by multiple cryptocurrency exchanges. The theft, one of the largest crypto heists of the year, was carried out by a “white‑hat” hacker who exploited a software bug. Blockstream, the operator, paused operations and later fixed the vulnerability. About 3,400 of the 4,000 stolen bitcoins were returned, but roughly 600 coins, worth about $47 million, remain in the hacker’s possession. Operations will stay halted until further security upgrades are completed.

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thehackernews.com · Sep 8

Liquid Hackers Return 3,400 Bitcoin Taken via Elements Bug, Still Holding $47M…

A hacker group that claimed to be white‑hat stole nearly 4,000 BTC from the Liquid Network on September 6. The next day, 3,400 BTC (≈$265 million) were returned to the Liquid Federation address, leaving 598.5 BTC (≈$47 million) unreturned. The theft used a bug in Elements that created L‑BTC, which was then peg‑out to the main chain. Blockstream confirmed the return after patching its bridge nodes, but the Liquid sidechain remains paused and the incident is still active.

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