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      Liquid Network Recovers 3,400 BTC from Hackers, 600 BTC Still Missing

      A significant recovery of funds has occurred following a hacking incident involving the Liquid Network, where self-identified 'white hat hackers' extracted approximately 4,000 BTC. On Monday, these hackers returned 3,400 BTC, valued at around $269.2 million, to the federal wallet of the sidechain, marking a recovery of about 85% of the stolen assets. The situation unfolded when a customer initiated a transaction sending 4,000 L-BTC to SideSwap's peg-out service on Sunday.

      The attackers communicated their intentions through Bitcoin transaction messages, asserting their status as ethical hackers and demanding that the vulnerability be addressed before returning the funds. Following this, Blockstream confirmed that the bridging node had been patched, allowing for the safe return of the funds. However, approximately 598.5 BTC, equivalent to about $47 million, remains unreturned in a related address.

      In response to the incident, Liquid has disabled its bridging nodes and has requested that exchanges halt L-BTC deposits and withdrawals. The company has not yet provided a timeline for resuming normal operations or a strategy for dealing with the remaining funds. Ledger's Chief Technology Officer, Charles Guillemet, expressed doubts regarding the hackers' claims of being 'white hats,' suggesting that their actions resembled extortion rather than a legitimate negotiation for a reward.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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