Blockstream's settlement network, Liquid Network, has encountered a large-scale asset transfer incident. This network is used for settlement by multiple cryptocurrency trading platforms. The company stated on platform X that a "white hat" hacker transferred approximately 4,000 bitcoins from the network wallet, valued at around $340 million according to the information provided in the report. Relevant operations have currently been suspended.
Approximately 3,400 bitcoins have been returned.
Public information indicates that the identity of the attacker has not yet been confirmed. Several crypto media reports suggest that this incident may be related to a vulnerability that could be exploited by the attacker to withdraw funds. Subsequently, the perpetrator stated that they would return the funds as long as the Blockstream vulnerability is fixed.
Samson Mow, who once served as a senior executive at Blockstream, stated on the X platform on September 8 that the relevant vulnerabilities had been fixed. Of the approximately 4,000 bitcoins that were stolen, about 3,400 have been returned. According to reports, around 600 bitcoins are still missing, valued at about 47 million US dollars.
The network continues to be suspended from operation.
Mow indicates that Liquid Network will not resume operations until additional fixes and security improvements are made. This means that even though most of the funds have been returned, the risk management at the network level has not yet been completed, and related services still need to wait for further reinforcement.
- Returned: Approximately 3,400 Bitcoins
- Not returned: Approximately 600 Bitcoins
- Total amount involved: approximately 4,000 Bitcoins
One of the larger crypto theft incidents of the year
According to the rankings of Rekt which tracks crypto theft incidents, this case is considered one of the larger digital asset thefts known this year. The incident once again highlights that vulnerabilities in settlement networks and custodial wallets remain one of the main security risks faced by the crypto industry.
