Liquid Network hit by $340m bitcoin heist, hacker returns most funds

A major cryptocurrency security breach has seen about 4,000 bitcoins, worth roughly 340 million dollars, stolen from Liquid Network, a settlement platform used by several crypto exchanges.

Liquid Network, launched in 2018 by crypto infrastructure firm Blockstream, said the funds were taken from one of its wallets. The network has since paused operations while it investigates the breach and works to strengthen its security.

The identity of the hacker remains unknown, but reports indicate the attacker exploited a software vulnerability to withdraw the funds. The hacker reportedly offered to return the bitcoin if the vulnerability was fixed.

Former Blockstream executive Samson Mow said the security flaw has now been addressed and about 3,400 of the stolen bitcoins have been returned. However, roughly 600 bitcoins, valued at about 47 million dollars, remain with the hacker.

Mow said Liquid Network will remain suspended until additional security measures and improvements are completed. The incident ranks among the largest cryptocurrency thefts in recent years.