Blockstream Says Bug Is Fixed, Tells "White Hat" Hackers It's Safe to Return 4,000 BTC

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Blockstream says Liquid bridge nodes are patched after a public "whitehat" negotiation over ~4,000 BTC withdrawn via a reported vulnerability. With ~3,998.5 BTC still held by the hackers, near-term market focus is on operational and counterparty risk around Liquid and the credibility of fund recovery. The episode highlights infrastructure security and settlement risk, but does not directly change Bitcoin network fundamentals.

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Blockstream has told the self-described "white hat" hackers who pulled roughly 4,000 BTC from Liquid that the vulnerability has been fixed and the funds can be returned. The hackers had previously said they would send the bitcoin back only after the flaw was addressed, with the exchange unfolding in public via Bitcoin OP_RETURN messages. They initially offered to return "most" of the BTC, then revised their stance: "Please fix the bug first. The chain is under risk at latest commit right now. Make sure every node is patched. Then we will transfer the money back safely after confirming the fix." They also provided Blockstream with encrypted details of the vulnerability. About two hours ago, Blockstream replied with a PGP-signed OP_RETURN message stating: "Bridge nodes are patched, safe to return the funds." As of now, 3,998.5 BTC remain under the hackers' control, leaving the next move to them.