Blockstream’s Liquid Network lost approximately 4,000 BTC, worth roughly $320 million, on September 6 after hackers exploited a range-proof verification bug in the underlying Elements software. The federation’s reserves cratered from over 4,200 BTC to about 197 BTC in a single stroke. The attackers, who identified as white-hat hackers, returned around 3,400 BTC after Blockstream patched the vulnerability, keeping roughly 598 BTC, valued at about $47 million, as a self-appointed bounty. No federation keys were compromised since the 11-of-15 multisig model held, with the problem originating upstream in L-BTC token validation. The Liquid Network remains paused with no public timeline for resuming normal operations.
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