Liquid Network Recovers 3,400 of 4,000 BTC After $340M Wallet Drain; Network Still Offline

Liquid Network, the Bitcoin settlement network operated by Blockstream and used by several cryptocurrency exchanges, has halted related operations after an apparent large-scale withdrawal from a network wallet. CoinDesk reported that Blockstream said on X a "white hat" hacker moved roughly 4,000 BTC from the wallet, worth about $340 million based on the figures cited. About 3,400 BTC has since been returned, leaving around 600 BTC still outstanding, estimated at roughly $47 million. Public information has not confirmed the attacker's identity. Crypto media outlets said the incident may have stemmed from an exploitable vulnerability used to withdraw funds. The attacker reportedly indicated the funds would be returned once Blockstream patched the issue. On September 8, Samson Mow, a former Blockstream executive, posted on X that the vulnerability has been patched and that approximately 3,400 of the 4,000 BTC has been recovered. Despite the partial recovery, Liquid Network remains offline. Mow said the network will not restart until additional fixes and security upgrades are completed. Key figures: - Refunded: ~3,400 BTC - Unreturned: ~600 BTC - Total involved: ~4,000 BTC Rekt's leaderboard, which tracks crypto theft incidents, lists the event among the largest known digital-asset thefts of the year. The episode highlights ongoing security risks tied to settlement networks and custodial wallets across the crypto industry.