Liquid Network Hacker Returns 3,400 BTC After $320M Exploit

Actors behind the Liquid Network exploit returned 3,400 BTC to the Liquid Federation wallet on Sept. 7, recovering about 85% of the bitcoin withdrawn in the incident. The transfer was included in Bitcoin block 965950, providing on-chain confirmation of the return.

The recovery followed a PGP-signed on-chain message from Blockstream stating that its bridge nodes had been patched and that the funds were safe to return. Nearly 600 BTC remains in the actors’ address, however.

3,400 BTC Returns to Liquid Federation Wallet

The Sept. 7 transaction returned 3,400 BTC to the federation wallet after an exploit that had removed roughly 4,000 BTC. The returned amount represented approximately 85% of the funds withdrawn, according to the transaction’s inclusion in block 965950.

The on-chain return materially reduced the amount still held outside the wallet, but did not restore the full balance taken during the incident.

Blockstream’s Patch Message Preceded the Return

Earlier the same day, Blockstream used an on-chain, PGP-signed message to confirm that its bridge nodes had been patched. The message, recorded in Bitcoin block 965910, said the funds could safely be returned.

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