Hack 4,000 BTC ($320M) just to ... remind about the project’s bug fix
• A person claiming to be a “white-hat hacker” has withdrawn nearly 4,000 BTC ($320M) from Liquid Network’s reserve wallet, the Bitcoin sidechain developed by Blockstream.
• The initial cause was identified as a software bug that allows L-BTC to be created without Bitcoin backing. SideSwap mistook these L-BTC for real assets and exchanged them for nearly 4,000 BTC.
• The hacker then immediately posted a message on the blockchain, promising to return most of the funds once the vulnerability is patched. As for Liquid, they have temporarily halted new transactions and asked exchanges to freeze deposits and withdrawals of L-BTC.
• Blockstream responded that the bridge nodes are currently secure and can be used to move BTC back, but the funds still haven’t been returned.
• A person claiming to be a “white-hat hacker” has withdrawn nearly 4,000 BTC ($320M) from Liquid Network’s reserve wallet, the Bitcoin sidechain developed by Blockstream.
• The initial cause was identified as a software bug that allows L-BTC to be created without Bitcoin backing. SideSwap mistook these L-BTC for real assets and exchanged them for nearly 4,000 BTC.
• The hacker then immediately posted a message on the blockchain, promising to return most of the funds once the vulnerability is patched. As for Liquid, they have temporarily halted new transactions and asked exchanges to freeze deposits and withdrawals of L-BTC.
• Blockstream responded that the bridge nodes are currently secure and can be used to move BTC back, but the funds still haven’t been returned.
