News linked to both this project and an event.
According to Cryptopolitan, over 100 researchers used AI coding agents to reduce the quantum attack resource score for Bitcoin's secp256k1 elliptic curve point addition subroutine by 86.1% (from 10.75 billion to 1.496 billion). This optimization only targeted a single step within Shor's algorithm and did not crack any private keys or transfer funds; a full-scale attack still requires fault-tolerant quantum hardware that does not yet exist. However, each efficiency gain is compressing the time window for blockchains to complete their post-quantum migration. According to Glassnode data, approximately 6.04 million BTC (30.2% of the circulating supply) currently faces potential quantum risk due to publicly exposed on-chain public keys. Ethereum plans to achieve full quantum resistance before December 2029, while the Bitcoin community faces greater governance challenges, including how to handle approximately 1.7 million dormant coins held in P2PK addresses suspected to belong to Satoshi, which remains unresolved.
Bitcoin News posted on X stating that Samson Mow and Bitcoin Red Team researcher Calle are engaged in a public dispute over whether security warnings related to a Liquid Network exploit were properly handled. Calle claims that Blockstream did not act on the Red Team's email, ultimately resulting in a loss of 600 BTC; Mow responded by saying "no email was ignored." Calle stated that once Blockstream restores normal Liquid operations and publishes a post-mortem report, the Red Team will release a full account of the disclosure process. Mow separately warned against blindly trusting AI-generated security reports, saying that unverified fixes could introduce new vulnerabilities, and criticized researchers who prioritize pursuing "clout" over protecting Bitcoin.
Odaily News: Researchers from institutions including the Ethereum Foundation, Theta Labs, and StarkWare have jointly published a paper, using AI coding agents to deeply optimize the core operations of Shor's algorithm. The computing resources required for a potential quantum attack on Bitcoin and Ethereum (secp256k1 cryptographic system) have been reduced by more than 50% compared to Google's benchmark in March of this year. The number of logical qubits required for the circuit has been compressed to 1,151, and later versions have even been reduced to 813. Although current quantum hardware still cannot directly break public chains, the research shows that pure algorithmic optimization is significantly narrowing the time window for the quantum threat. The researchers emphasize that quantum-resistant upgrades take a long time and cannot be applied retroactively, and the industry needs to prepare defenses in advance. (Coindesk)
according to Bitcoin News monitoring, Samson Mow has warned the alleged white hat hacker behind the Liquid attack that they may have left behind more clues than they realize. Mow stated, "The net of justice is wide and inescapable; no one will be spared." Mow also questioned the attacker's demand to return Bitcoin in exchange for a bounty, asking whether it is wise to publicly admit to taking Bitcoin and demand a bounty in return. Mow pointed out that Liquid's approximately $5 billion in assets, including L-BTC, Tether, and real-world assets, all belong to their respective issuers and holders, and cannot be used as a basis for calculating a bounty. Regardless of how other matters are negotiated, all user assets must be fully returned.
according to the Osmosis team, a solution proposal addressing the previous Nomic chain nBTC incident has now been published and has officially entered community discussion. Under the proposal, the Osmosis governance community will consider seizing the previously frozen attacker assets and using BTC accumulated in the community pool to cover the remaining collateral shortfall, in order to restore full collateral backing for Alloyed BTC. The plan still requires governance discussion and voting, and asset seizure or collateral replenishment has not yet been completed.
Odaily News: According to Bitcoin News monitoring, DART stated that it and independent white-hat researchers have recovered over 50 BTC from wallets affected by the COLDCARD entropy vulnerability, completing the transfer before malicious attackers could steal the funds. DART is a digital asset recovery organization that works with white-hat researchers to protect vulnerable funds and coordinate their lawful return to owners. The white-hat researchers did not request a bounty and will return the Bitcoin to its owners.The rescued BTC has been transferred to the Crypto Recovery Trust. This trust is a dedicated statutory trust established under Wyoming state law to hold recovered digital assets and return them after confirming and verifying the legitimate owners. The trust will document the recovery process, separate the BTC from DART and researchers' funds, conduct blockchain analysis, ownership verification, and sanctions screening, and provide a lawful return process for verified owners. If ownership is disputed, or if the relevant funds involve sanctions or criminal proceedings, the BTC will be handled in accordance with applicable legal procedures. DART stated that other vulnerable assets and recovery leads are still under review.
Odaily News: Liquid Network announced that the emergency release Elements v23.3.4 is now live, with Functionary nodes having immediately begun upgrades. All Liquid node operators are advised to update accordingly. This release addresses a previously identified Proof validation cache vulnerability by strengthening the cache keys used for Range Proofs.Regarding network recovery, Blockstream stated that a recovery plan is still being formulated, expected to proceed in three phases: **resume block production while continuing to pause Peg operations; replay verified valid transactions; restore Peg operations after the network state is fully recovered and fund returns are confirmed.** Currently, the first two phases are being tested in parallel, and any phase will only advance once confirmed secure.Liquid Network stated that Elements v23.3.4 has undergone multiple rounds of internal and external reviews, with participants including the Bitcoin Red Team, Alpen Labs, and other teams. Meanwhile, Liquid Network reminds users to be wary of fake upgrade websites exploiting this incident for scams. Information should only be obtained through official Liquid Network and Blockstream channels, and users should never send funds to strangers or disclose private keys or seed phrases.
According to Odaily Planet Daily, as monitored by Bitcoin News, the white hat hacker group behind the Liquid exploit has accused Blockstream of spending only $1.5 million—or possibly nothing at all—to secure $5 billion in assets. In a new on-chain message, the group demanded that Blockstream allocate its own funds to pay a bug bounty equivalent to 10% of the associated assets, warning that refusal to pay would result in a 15% loss for holders. The group also stated it would release the private keys used to decrypt previous communications with Blockstream. Earlier, the group had returned 3,400 BTC to the Liquid Federation, with approximately 600 BTC still unrepaid.
Bitcoin News posted on X platform that Alby has confirmed a critical vulnerability in Alby Hub v1.7.0 through v1.18.5. If the management API is exposed to the public internet, attackers could gain unauthorized access and transfer funds. Currently, 1 user is known to be affected, and Alby Hub v1.19.0 and later versions are not affected. Alby recommends affected users restrict public access to the management interface, update to v1.24.0 immediately, and change their unlock password after updating. Multiple issues reported by Bitcoin Team Red, Project Loupe, and other researchers have also been fixed in the latest version.
Liquid Network's official security incident report: On September 6, a vulnerability related to the range proof verification method in Liquid node caching within the open-source software Elements was exploited, resulting in the creation of approximately 4,000 LBTC tokens not backed by bitcoin reserves. The exploiter subsequently exchanged them for approximately 4,000 BTC via SideSwap and the Liquid standard Peg-out mechanism. Prior to the incident, Liquid's reserves stood at approximately 4,205 BTC. After the relevant Peg-out and other withdrawals completed before the network halt, reserves fell to 197 BTC.According to the official statement, the incident did not involve the compromise of Functionary nodes or private keys, and other issued assets on Liquid such as USDT were also unaffected by the vulnerability. The exploiter claimed to be a white hat security researcher and returned 3,400 BTC to the Liquid Federation Peg wallet on September 7. Approximately 598.5 BTC (about 15% of the funds involved) remain unrecovered, and Blockstream is in communication to recover the remaining assets.At present, the top priority is to recover the remaining funds and restore Liquid Network to normal operation as quickly and safely as possible. A fix for the vulnerability has been developed and is currently undergoing multiple rounds of internal and external review. Blockstream is preparing to urgently release Elements v23.3.4, which is expected to be rolled out as soon as preparations are complete, with a target launch within approximately 48 hours. Following the software update, Liquid Network Functionary operators will make further adjustments to restore full network functionality and resume a corrected network state, including rejecting previously invalid Peg-outs.
according to Bitcoin News monitoring, the Coldcard thief is prioritizing emptying the largest portion of the third wave of vaults. Galaxy Research stated that these wallets have transferred out 97.09 BTC, worth approximately $7.7 million, accounting for about 45% of the assets in this batch. The attacker created 293 2/2 vaults themselves and previously moved some tokens via THORChain on September 2, followed by multiple rounds of CoinJoin over the weekend. The vulnerability stems from a 2021 firmware flaw that reduced seed entropy to a minimum of 40 bits. Of the tokens stolen in this exploit, approximately 82% remain unmoved.
Odaily News: The State Attorney General's Office of Mexico (FGJEM) stated that two suspects are accused of killing four people in search of a cold wallet believed to contain millions of dollars in Bitcoin. The two are scheduled to appear in court on Wednesday, where a judge will determine whether there is sufficient evidence to continue criminal proceedings.The surnames of suspects Diego Sebastián and Gerardo have not been disclosed. Prosecutors allege that the pair killed Jonathan Meléndez, keyboardist for the rock band Camilo Séptimo, his pregnant wife, their daughter, and an employee at a residence in the city of Atizapán de Zaragoza. The family's golden retriever was also killed.Mexico's Secretary of Security, Omar García Harfuch, stated that one of the suspects was a business partner of the victim and allegedly used that relationship to gain entry into the residence. If convicted, the two could face sentences ranging from 25 to 70 years in prison for each victim.Blockchain security firm CertiK reported that 52 violent coercion attacks against cryptocurrency holders were recorded globally in the first half of 2026, a 33.3% increase from 39 during the same period in 2025. Blockchain analysis company Chainalysis estimates that the value of stolen cryptocurrency from related attacks exceeded $30 million. (Cointelegraph)
Odaily News, according to Bitcoin News, Blockstream stated that Liquid Federation members are preparing to coordinate a network restart, with the updated software already deployed. Previously, a security incident occurred on the Liquid Network, resulting in fund transfers. Blockstream noted that its team remains focused on further strengthening the network and ensuring asset restitution. Blockstream thanked the Bitcoin community for its patience, support, suggestions, and assistance, and stated that more updates will be released in the future.
According to on-chain monitoring by analyst PeckShield (@PeckShieldAlert), the Liquid Network was targeted by white-hat hackers. Approximately 4,000 BTC (roughly $320 million) were transferred from a Liquid Federation wallet. The funds were consolidated into address bc1ql4mfu6aundtkksxklfajs2h3t9nzcd6gyqjlte, accompanied by an on-chain message: "We are white hats, please contact us on-chain." Subsequently, the hackers completed on-chain negotiations with Blockstream, returning 3,400 BTC (approximately $315 million, or 85% of the total) while retaining around 598.5 BTC (about $47.38 million) as a bug bounty.
According to the Associated Press, the U.S. Department of Justice has charged Ma Long Ram and 17 other defendants in connection with a Bitcoin theft scheme valued at over $240 million. Prosecutors allege that the group carried out a social engineering attack on a Washington resident by impersonating employees of Google and cryptocurrency exchange Gemini, thereby gaining control of their accounts and security codes to steal more than 4,100 Bitcoin. The suspects subsequently laundered the proceeds through multiple trading platforms and spent the money on sports cars, mansions, luxury watches, private jet services, and nightclub expenses.
Odaily News: Blockstream has notified white hat hackers that the vulnerability fix is complete and the approximately 4,000 BTC can be safely returned. The hacker who previously withdrew funds from the Liquid network expressed willingness to return them, but requested that the vulnerability be fixed first. Both parties have been negotiating publicly through Bitcoin OP_RETURN messages.The hacker initially proposed returning "most" of the BTC, but later changed their stance, demanding that the vulnerability be fixed first: "Ensure every node has been patched, and once the fix is confirmed, we will securely return the funds." The hacker also sent encrypted vulnerability details to Blockstream. About two hours ago, Blockstream responded via a PGP-signed OP_RETURN message stating that nodes have been patched. Currently, 3,998.5 BTC remain under the hacker's control.
According to Galaxy Research, in the Coldcard wallet attack incident, the Wave 3 attacker has transferred approximately 45% of the stolen Bitcoin, with the related funds routed to Ethereum via THORChain or entering CoinJoin transactions to increase tracking difficulty. Galaxy stated that the attacker previously created 293 2-of-2 multisig vaults to hold victim funds, draining them from largest to smallest amount, and the funds in the 11 largest vaults have now been fully transferred out.
Odaily News Silicon Valley angel investor Liron Shapira (@liron) posted on X this morning: "I predict (with 50% confidence): due to AI shaking the security and stability guarantees people once believed Bitcoin possessed, BTC's price will plummet more than 50% within the next two years."Ethereum co-founder Vitalik Buterin rebutted this, stating: "I hold the exact opposite view. My basic reasoning is that, in the long run, I am quite optimistic about network security. I believe the main challenge lies in smoothly navigating the transition period. Moreover, I think BTC can at least properly handle all problems that do not require social consensus (such as upgrading clients, mining pools, etc., to counter network-level attacks — these fall into this category). Additionally, I believe the probability of hash algorithms or proof-of-work mechanisms being genuinely broken is extremely slim. I would have wanted to bet with you, but considering my current asset allocation (I guess you hold the same view regarding Ethereum ETH), I have already staked about 90% of my net worth on this bet."
According to Odaily, monitoring by Galaxy's Head of Research revealed that Liquid's white hat hacker stated they would return most of the 4,000 BTC after the Liquid Network vulnerability is patched. The hacker communicated with Blockstream through OP_RETURN messages and PGP-encrypted text: In block 965,822, a Blockstream address sent 1,000 satoshis with the message "Please contact the security team via the Blockstream website"; in block 965,865, the hacker sent an encrypted message to their own key, accompanied by a detached PGP signature that can be verified using the key published by Blockstream; in block 965,869, the hacker sent 1,000 satoshis to the Liquid federation peg-in wallet via a self-spend transaction with the message "Can we return the majority of the funds to the federation address?"; in block 965,875, the hacker conducted another self-spend transaction, sending 1,000 satoshis to the federation peg-in wallet and leaving an OP_RETURN message: "Please fix the vulnerability first. As of the latest commit, there is risk on-chain. Please ensure every node completes the patch update. Once the fix is confirmed, we will securely transfer the funds back." Relevant technical details were encrypted via PGP messages to the key published by Blockstream, readable only by Blockstream.
Odaily News: The attacker behind the Coldcard "Wave 3" exploit continues to move stolen funds. In this phase, the attacker created 293 separate 2-of-2 multisig vaults for each victim's assets. On September 2, the first batch of funds was bridged to Ethereum via THORChain; the latest round of transfers has begun entering the CoinJoin mixing process.Currently, the Wave 3 attacker is processing the largest holdings in descending order by stolen amount, having already transferred vaults ranked 1 through 11 in sequence. The next 10 vaults yet to be transferred collectively hold 30.81 BTC, while vaults ranked 61 through 293 collectively hold 33.77 BTC.To date, the attacker has moved approximately 45% of the assets stolen in this exploit, with funds either flowing to Ethereum or entering CoinJoin mixing transactions. This latest transfer activity has also revealed a previously unknown vault: 58 addresses jointly spent funds via a 2-of-2 multisig setup in the same format as Wave 3, with the Wave 3 attacker subsequently routing them to a jump address that funds CoinJoin transactions.This vault is currently marked with "cause = open," but it is highly likely to belong to Coldcard victims as well, which could bring the total number of vaults involved in Wave 3 to 294 and push the previously disclosed total stolen in the Coldcard exploit to approximately 1,806 BTC. At present, roughly 82% of the stolen BTC remains in addresses initially controlled by the attacker, while approximately 18% has been moved, with fund flows suggesting it may be undergoing laundering.