The Liquid Network, a settlement network operated by Blockstream, experienced a large-scale asset withdrawal. The network is used by multiple cryptocurrency exchanges for settlement. The company stated on X that a "white hat" hacker transferred approximately 4,000 BTC from the network’s wallet, valued at around $340 million based on the figures cited, and has since suspended related operations.
Approximately 3,400 bitcoins have been returned.
Public information indicates that the attacker's identity has not been confirmed. Multiple cryptocurrency media outlets reported that the incident may be linked to a exploitable vulnerability, which the attacker used to withdraw funds. Subsequently, the attacker stated that funds would be returned once Blockstream patches the vulnerability.
Samson Mow, former executive at Blockstream, stated on X on September 8 that the related vulnerability has been patched, and approximately 3,400 of the stolen 4,000 bitcoins have been returned. According to reports, around 600 bitcoins, valued at approximately $47 million, remain unreturned.
The network remains offline.
Mow stated that the Liquid Network will not resume operations until additional fixes and security improvements are completed. This means that, even though most funds have already been recovered, risk mitigation at the network level is not yet complete, and related services must wait for further hardening.
- Refunded: Approximately 3,400 BTC
- Unreturned: Approximately 600 BTC
- Total amount involved: approximately 4,000 bitcoins
One of the larger cryptocurrency thefts of the year
According to the Rekt leaderboard, which tracks crypto theft incidents, this incident is among the largest known digital asset thefts of the year. It also underscores that vulnerabilities in settlement networks and custodial wallets remain one of the primary sources of security risks facing the crypto industry.