A hacker stole around $340 million in bitcoins from Liquid Network, a settlement exchange operated by crypto firm Blockstream, then returned most of it. According to TechCrunch, the theft exploited a security bug, and the hacker demanded a fix before agreeing to return the funds.
The hacker issued an ultimatum: patch the vulnerability, and the stolen bitcoins would be returned. Former Blockstream executive Samson Mow announced on X that the company had patched the bug and recovered around 3,400 of the 4,000 stolen bitcoins. Roughly 600 bitcoins, worth about $47 million, remained under the hacker's control. Whether that sum represents a bargaining chip, a trophy, or compensation for disclosure is unclear.
Why This Matters Beyond the Headlines
Liquid Network's suspension signals how vulnerable these platforms are when bugs remain undetected. For Indian crypto investors and traders who use these settlement networks, the incident exposes a risk: major infrastructure providers can harbor exploitable flaws that threaten hundreds of millions in assets.
The negotiation differs from typical ransomware attacks. Rather than demanding payment, the hacker forced Blockstream to address a security flaw that should have been fixed at launch. This pattern suggests the security community is becoming more deliberate about accountability.
Blockstream continues implementing additional security improvements while Liquid Network remains offline. According to the Rekt leaderboard, which tracks digital fund thefts, this ranks among the largest crypto heists on record. Even in an industry built on decentralization and security, a $340 million vulnerability can open, though in this case, someone chose to close it.
