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

security

Attackers exploited a bug in the Liquid Network’s Elements code to drain approximately 3,400 BTC, representing about 95% of the network’s Bitcoin reserve. They have since returned the stolen bitcoin, but reportedly still control roughly $47 million worth of BTC. The incident highlights the systemic risk that software vulnerabilities in Bitcoin sidechain infrastructure can pose to custodial reserves and network confidence, despite Bitcoin’s base layer remaining unaffected.

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