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Liquid Network White Hat Returns 3,400 BTC, Keeps 598.5 BTC as Bug Bounty

AI Market Summary
Liquid Network's federation wallet was drained of ~4,000 BTC in an apparent white-hat action and later recovered ~3,400 BTC after onchain negotiation, with ~598.5 BTC kept as a bounty. The incident underscores custody and governance risks around federated sidechains and can lift near-term operational and counterparty risk awareness across BTC-linked infrastructure, even as most funds were returned.
Impact level
● Medium
Affected assets
BTC/USDT-1.12%
AI Insight · BTC/USDTAI Insight
● Neutral
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Onchain analyst PeckShield (@PeckShieldAlert) reported that Liquid Network was hit in a white-hat incident involving the Liquid Federation wallet. Roughly 4,000 BTC (about $320 million) was moved to bc1ql4mfu6aundtkksxklfajs2h3t9nzcd6gyqjlte, along with an onchain note reading: "We are whitehats; please contact us onchain." The party later negotiated onchain with Blockstream and returned 3,400 BTC (approximately $315 million, or 85% of the total), while keeping about 598.5 BTC (around $47.38 million) as a bug bounty.
Selected
BTC
BTC-1.08%
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