Liquid Network halts new transactions after 'nice guy' hackers steal nearly all its Bitcoin — but then return most of it after a patch is issued
- Liquid Network hack exploited a bug in SideSwap, releasing 3,998 BTC (~$313M) to attackers
- Hackers claimed “white‑hat” intent, returning 3,400 BTC after fixes, leaving 598 BTC missing
- Network remains paused as Blockstream and Federation patch vulnerabilities and prepare safe restart
The latest twist in the Liquid Network Bitcoin hack is worthy of a short movie, if not a full-length feature film.
Apparently, the hackers are actually the good guys, who stole the money to “keep it safe” until a vulnerability in the protocol had been fully resolved. They promised to return the funds afterwards.
What is Liquid Network?
Liquid Network was designed to solve a specific problem on the Bitcoin blockchain - being rather slow. The transactions on the network are recorded in a “block”, which is added to the chain roughly once every 10 minutes. Also, each block can only hold a limited number of transactions, which means the...
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