Liquid Network Recovers 3,400 BTC After Hacker Returns Funds

The Liquid sidechain saw a partial recovery of assets on September 7 as a hacker returned 3,400 BTC to the federation wallet. The mysterious actor sent the funds back with an on chain message asking if the return was acceptable. Despite this partial repayment, the hacker kept roughly 598.5 BTC, valued at about $47 million at the time of the incident.

While this return provides some relief, significant uncertainty remains for users. The sidechain is still grappling with a major security incident and bridge node outages. Consequently, users are currently unable to convert their L BTC tokens back into standard Bitcoin. Exchanges continue to pause deposits and withdrawals for the asset while the team works to resolve the technical issues.

Investors are now waiting for official word on when redemption services will resume. Beyond the restoration of technical access, there is a need for clear accounting to confirm that the remaining assets fully back the L BTC in circulation. Traders should monitor official service updates closely before expecting a return to normal activity on the platform.