Liquid Hackers Return 3,400 Bitcoin Taken via Elements Bug, Still Holding $47M in BTC

Summary: Hackers took about 4,000 bitcoin, roughly 95% of Liquid Network's reported reserves of about 4,200 bitcoin, from the federation wallet on Sunday, September 6, and returned 3,400 bitcoin to a Liquid Federation address at 16:09 UTC on September 7. The remaining 598.5 bitcoin was the change from that same transaction, sent back to the originating address and still there on September 8, while SideSwap attributed the L-BTC used in the withdrawal to a bug in Elements and said its Peg-out Authorization Key was not compromised.
Key Takeaway: About 598.5 bitcoin, worth roughly $47 million at a bitcoin price of about $78,000 on September 8, has not come back, and Ledger CTO Charles Guillemet said that if it is a reward negotiated through encrypted on-chain messages, the arrangement looks more like extortion. Liquid remains paused, so L-BTC holders cannot turn the token back into bitcoin, and Blockstream's status page still listed the incident as active without stating how much bitcoin now backs L-BTC.

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