Liquid Network Recovers 3,400 BTC Following White Hat Negotiations

The Liquid Network has received the return of 3,400 BTC to its federation wallet following on-chain negotiations with parties describing themselves as white-hat actors. This development occurred after Blockstream, the entity supporting Liquid Network, reported that security vulnerabilities in bridge nodes had been patched.

While the majority of the bitcoin has been restored, approximately 598.5 BTC—valued near $47 million as of the incident—remains at an address controlled by the individuals involved. The status of these remaining funds or the intentions behind their retention have not been formally disclosed.

The event highlights the ongoing challenges decentralized networks face in managing security incidents and coordinating with independent actors who identify as ethical hackers or white hats. It also underscores the importance of timely response and transparent communication in mitigating the effects of such incidents.

Ongoing investigation and possible discussions are expected as stakeholders seek a resolution regarding the unrecovered portion of the funds.