Liquid recovers 3,400 BTC after network exploit

• Liquid Network has recovered 3,400 Bitcoin (CRYPTO:BTC) after an exploit drained about 4,000 BTC.
• The attackers have kept about 598.5 BTC worth roughly $47 million.
• Liquid remains frozen while operators work to restore full L-BTC backing.

Liquid Network has recovered 3,400 Bitcoin (CRYPTO:BTC) after an exploit drained about 4,000 BTC from the network.

The recovered Bitcoin represents about 85% of the funds taken, while roughly 598.5 BTC remains with the attackers.

The attackers returned the Bitcoin after Blockstream patched the affected bridge nodes, while Liquid kept network operations frozen.

Liquid said the network will remain paused until operators can restore full one-to-one backing for Liquid Bitcoin (L-BTC).

The exploit affected the system supporting L-BTC, a Bitcoin-backed asset issued on the Liquid Network.

The attackers described themselves as white hats and said they returned most of the funds while keeping about 598.5 BTC.

Liquid and its operators are continuing to investigate the incident and assess when normal network operations can resume.

At the time of reporting, Bitcoin price was $79,416.77.