News Heat Trend
Project Overview
Liquid is an AI-powered DeFi marketplace that uses AI agents to perform on-chain operations for users. It provides automated tools to optimize users' crypto asset management in a decentralized environment.
JackYi: Narrative collapse and soaring listing fees: the crypto primary market is being crippled by four major issues
Jackyi, founder of Liquid Capital, pointed out in a post that the crypto primary market is accelerating into a downturn, driven by four core reasons: first, market narratives are collapsing, leaving whitepapers and institutional endorsements unable to secure investor backing; second, project supply is severely imbalanced, making it extremely difficult for high-quality projects to break through; third, the "1+3" token unlock mechanism specifically harms VCs, enabling project teams, market makers, and exchanges to profit and exit first; fourth, listing fees at top-tier exchanges reach tens of millions of dollars, inflating project valuation bubbles. He called on industry leaders to improve their listing screening mechanisms, abolish the "1+3" unlock clauses, and push projects back toward real revenue generation and buyback mechanisms, thereby attracting long-term participation from secondary market investors.
Bitcoin Pioneer Adam Back's Multiple Ventures Hit Setbacks: BSTR Ordered to Pay $15 Million Breakup Fee
Odaily News — Multiple Bitcoin ventures associated with Bitcoin pioneer and Blockstream co-founder Adam Back have recently suffered a series of setbacks: the merger between BSTR Holdings, the Bitcoin treasury project he championed, and a SPAC under Cantor Fitzgerald has been terminated, with BSTR ordered to pay a $15 million breakup fee; Blockstream Mining, the Bitcoin mining operation he co-founded and in which he holds a minority stake, along with its partner Exacore, has faced multiple lawsuits following its spin-off from Blockstream, accused of owing equipment payments, electricity bills, and customer deposits, with related financing totaling approximately $2 billion; meanwhile, Liquid Network, the Bitcoin sidechain initiated by Blockstream, suffered a hack in which approximately 4,000 BTC were stolen, of which 3,400 have been returned, with the hacker still retaining approximately $47 million worth of Bitcoin. (Bloomberg)
Rockawayx Acquires Relayer Capital, Adding Long/Short Strategy with ~70% Returns Since 2026
Odaily News: Digital asset investment platform Rockawayx has acquired digital asset hedge fund Relayer Capital, incorporating its directional long/short strategy into its approximately $2 billion investment platform. Relayer Capital founder Austin Barack will continue to oversee the strategy and assume the role of Chief Investment Officer of the newly renamed Rockawayx Liquid Opportunities Fund.Rockawayx CEO Viktor Fischer stated that the fund will invest in highly liquid crypto tokens and digital asset-related equities, with a focus on identifying assets that are mispriced relative to their business fundamentals, market position, or growth prospects. The fund is currently open to new external investors.Rockawayx disclosed that the strategy's estimated net return from the start of 2026 through August 21 stands at approximately 70%, outperforming a weighted portfolio of Bitcoin, Ethereum, and Solana by 86 percentage points. Major contributing positions include Venice AI, Hyperliquid, Grass Network, Pump.fun, and Zcash, with investment themes centered on AI and tokenized real-world asset markets.The acquisition adds a directional liquid strategy to Rockawayx's venture capital and market-neutral businesses. Rockawayx also operates infrastructure and onchain liquidity divisions, noting that these capabilities support its team in identifying blockchain market opportunities across stages—from early-stage funding and token issuance to public market trading. (Bitcoin.com News)
RockawayX Acquires Relayer Capital, Plans to Raise $150 Million to Expand Active Investment Business in the U.S.
According to The Block, crypto investment firm RockawayX announced the acquisition of crypto hedge fund Relayer Capital to integrate long/short and pairs trading strategies into its existing business and expand its presence in the U.S. market. Relayer will be renamed the RockawayX Liquid Opportunities Fund, focusing on investments in undervalued liquid tokens and crypto-related stocks; its founder, Austin Barack, will serve as the fund's CIO. RockawayX currently manages approximately $2 billion in assets, and the new fund plans to raise $150 million.
Liquid, a cryptocurrency derivatives exchange, announced the completion of its $18 million Series A funding round, co-led by Neo and Left Lane Capital.
According to Fortune, cryptocurrency derivatives exchange Liquid has announced the completion of an $18 million Series A funding round, co-led by Neo and Left Lane Capital, with participation from Haun Ventures, K5 Global, SV Angel, AntiFund, and Sunflower Capital. This comes less than six months after its $7.6 million seed round, which was led by Paradigm.
JackYi: The past wave of failures among crypto VCs and projects stemmed from incorrectly benchmarking against Web2; AI + finance represents the new opportunity.
JackYi, founder of Liquid Capital, posted on X: “The recent wave of failures among crypto VCs and projects had one core cause: funding was largely spent on maintaining teams that built useless Web3 products. The biggest misconception was trying to replicate Web2 products. In essence, Web3 is a financial industry—it doesn’t require re-creating Web2 products. Historically, the most successful crypto companies have all been financial products: stablecoins, exchanges, payment solutions, etc. Now, with the AI era arriving, two things are clear: first, massive fundraising and large teams are no longer necessary; second, AI + finance presents a new opportunity. We believe exceptional founders, backed by just a few elite team members, can build world-class companies—this represents the single largest opportunity in today’s primary market.”
Yi Lihua: Strongly recommend exchanges make project credibility a key evaluation metric
Odaily Report: Liquid Capital founder Yi Lihua posted on X platform, stating: "Many projects lack contractual integrity — users deposit BTC and are not allowed to withdraw, investors' coins are arbitrarily deducted, and terms are forcibly modified. This is no different from robbery. It poses indiscriminate credibility risk to VCs, KOLs, and secondary investors. I strongly recommend that exchanges make project credibility a key evaluation metric. In traditional stock markets, companies involved in fraud face penalties or delisting rules."
Indra hit by denial-of-service attack, forward swaps temporarily disabled
According to Bitcoin News monitoring, JAN3 has stated that its newly launched swap infrastructure Indra has suffered a denial-of-service attack, and the team has temporarily disabled forward swaps while investigating. Swaps already in progress may experience delays. Indra, developed by JAN3, is designed to replace Boltz in Aqua, enabling users to move Bitcoin between Lightning and Liquid, though Liquid peg operations remain restricted.
Liquid Network Releases Emergency Fix: Elements v23.3.4 Patches Proof Validation Cache Vulnerability
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.
Liquid Network: In discussions with white hat to recover remaining 598.5 BTC, network restoration efforts also underway
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.
ether.fi selects Nexus Mutual to provide slashing coverage for up to 15,000 ETH
: On-chain digital asset management neobank ether.fi has selected Nexus Mutual to provide ETH slashing coverage, covering slashing penalties for its validators up to 15,000 ETH. ether.fi stated that it operates a large-scale validator set on Ethereum, and slashing is a tail risk. This coverage is used to cover validator losses, with a scale exceeding the total historical ETH slashing losses. ether.fi currently manages over $6 billion in assets across products such as Cash, Stake, and Liquid. Since 2019, Nexus Mutual has provided over $7 billion in coverage for smart contract attacks, slashing, and other digital asset risks. (Decrypt)
ZachXBT: AscendEX Has Almost No Available Liquid Assets to Cover User Withdrawals
on-chain investigator ZachXBT has released verification information, stating that crypto exchange AscendEX has officially announced its cessation of operations, and the platform's current liquid assets are almost insufficient to cover user withdrawal demands. According to the platform announcement, the shutdown is primarily due to market conditions and the EU MiCA regulatory framework. Starting July 1st, all services including account opening, trading, and deposits will be fully suspended, with only basic functions such as account inquiry and withdrawals remaining open. After July 6th, all withdrawal channels will cease automatic processing and switch entirely to manual review. The official team has candidly warned that withdrawals may be significantly delayed or even impossible to process.ZachXBT’s investigation found that pending user claims amount to millions of dollars, yet the platform’s available liquid assets in hot wallets are severely insufficient. AscendEX is currently evaluating its financial status and a plan for handling user assets, with subsequent arrangements to be announced separately.
Liquid Attack Leaves L-BTC Redemptions Paused, Attacker Holds Over $51 Million in Bitcoin
Odaily News: Canadian Bitcoin exchange and wallet company Bull Bitcoin stated that due to the Liquid Network attack on September 6, users are temporarily unable to redeem L-BTC back to Bitcoin through the platform, and redemption operations are still pending resumption.Bull Bitcoin expects the related redemption service to potentially resume within 30 days, but stated that this expectation is not guaranteed. Due to its reliance on the L-BTC redemption mechanism to balance inventory, the platform has temporarily closed inbound Lightning Network payments.In this attack, the attacker transferred out nearly 4,000 Bitcoin from the protocol, later returning approximately 3,400; currently still holding 598.50 Bitcoin, valued at over $51 million. Liquid Network stated on September 17 that block production, network transactions, and L-BTC transfers have returned to normal. (Bitcoin.com News)
SlowMist Discloses Liquid Vulnerability Details: Attacker Minted 3,998.5 L-BTC Without Collateral, Approximately 598.5 BTC Still Not Returned
SlowMist has disclosed that the Liquid Network was attacked on September 6 via a Rangeproof verification cache key collision vulnerability. The attacker minted approximately 3,998.5 L-BTC without collateral — with no corresponding BTC peg-in — and then within minutes converted them to BTC on the Bitcoin mainnet via peg-out. After the incident, approximately 3,400 BTC was returned to the Liquid Federation peg wallet, but approximately 598.5 BTC remains under the attacker's control.SlowMist noted that the root cause of the vulnerability lies in the fact that the Rangeproof verification cache key in Elements did not include length prefixes when concatenating multiple variable-length fields, allowing different parameter combinations to potentially generate the same cache key. The attacker triggered a cache collision by constructing transactions, causing nodes to hit a "verification passed" cached result, thereby bypassing secp256k1_rangeproof_verify and the minimum amount check, ultimately accepting outputs not backed by real assets and completing the L-BTC minting. SlowMist stated that it has traced the fund flows on the Bitcoin side and completed its analysis of the incident.
Liquid Network white hat hacker returns 3,400 BTC, keeps about 598 BTC as bounty
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.
ZachXBT: AscendEX Has Almost No Available Liquid Assets to Cover User Withdrawals
on-chain investigator ZachXBT has released verification information, stating that crypto exchange AscendEX has officially announced its cessation of operations, and the platform's current liquid assets are almost insufficient to cover user withdrawal demands. According to the platform announcement, the shutdown is primarily due to market conditions and the EU MiCA regulatory framework. Starting July 1st, all services including account opening, trading, and deposits will be fully suspended, with only basic functions such as account inquiry and withdrawals remaining open. After July 6th, all withdrawal channels will cease automatic processing and switch entirely to manual review. The official team has candidly warned that withdrawals may be significantly delayed or even impossible to process.ZachXBT’s investigation found that pending user claims amount to millions of dollars, yet the platform’s available liquid assets in hot wallets are severely insufficient. AscendEX is currently evaluating its financial status and a plan for handling user assets, with subsequent arrangements to be announced separately.
Liquid Launches Co-Invest App, Enabling Users to Execute Live Trades Directly Within ChatGPT and Claude
According to The Block, multi-asset trading platform Liquid launched its Co-Invest application on Tuesday, enabling users to directly top up their accounts, conduct market analysis, and execute live trades within the ChatGPT and Claude chat interfaces—without leaving the AI assistant.
Bit Digital stakes nearly 30,000 ETH via Liquid Collective, valued at approximately $65.3 million
According to on-chain analyst Onchain Lens (@OnchainLens), publicly listed mining company Bit Digital (@bitdigital_btbt) has staked 29,900 ETH via Liquid Collective (@liquid_col), valued at approximately $65.3 million.
Yi Lihua: The End of the Black Swan Impact and Midterm Elections Marks the Best Opportunity to Buy the Dip
Odaily reports: Liquid Capital founder Yi Lihua posted on X platform, stating: "We repeatedly called for a pullback every day, but never expected the strong support level of $79,000 to be broken by a black swan event. This was not part of the plan. The originally planned $75,000 and $71,000 levels need to be re-observed and adjusted due to changed circumstances. However, the end of the black swan impact and the midterm elections marks the arrival of the best opportunity to buy the dip."
Q3 Crypto Hacking Losses Reach $1.18 Billion, Driven by Bitget and Liquid Vulnerabilities
据 Cointelegraph 报道，安全公司 Hacken 发布 2026 年 Q3 报告显示，第三季度加密货币黑客攻击事件共 107 起，总损失达 11.8 亿美元，为 2025 年 Q1 Bybit 事件（损失 16 亿美元）以来最严重的季度。 其中 77%（约 9.06 亿美元）损失源于第三方供应商、开发工具或未纳入安全审计的基础设施漏洞。四大主要事件分别为：Bitget 黑客攻击（3.87 亿美元）、Liquid Network 漏洞（3.2 亿美元）、Tectonic 漏洞（1.2 亿美元）及 Coldcard 固件漏洞（1.15 亿美元），合计占总损失约 80%。智能合约为最高频攻击向量，涉及 71 起事件，损失 2.28 亿美元。 在资金追回方面，约 3.87 亿美元（33%）被归还或逆转，其中"白帽黑客"归还 Liquid Network 被盗资金 2.72 亿美元，Cronos 验证者回滚 114 分钟区块链历史追回 1.11 亿美元；运营商另行垫付 4.1 亿美元补偿用户损失，但仍有约 3.84 亿美元（32%）既未追回也未获赔付。
In Q3 2026, cryptocurrency hacks caused $1.18 billion in losses, with Bitget and Liquid Network incidents accounting for $707 million combined
Odaily News: Security firm Hacken disclosed that a total of 107 cryptocurrency hacking incidents were recorded in Q3 2026, with total losses amounting to $1.18 billion. Of that, approximately $906 million stemmed from compromised vendors, developer tools, disclosed but undeployed fixes, and infrastructure outside audit scope, accounting for roughly 77% of quarterly losses.Quarterly losses were mainly concentrated in four incidents: crypto trading platform Bitget suffered $387 million in losses from an attack, Liquid Network lost $320 million to exploitation, Tectonic lost $120 million to exploitation, and a Coldcard firmware vulnerability caused approximately $115 million in losses. About 80% of losses were concentrated in the above incidents, while 98 incidents resulted in losses below $10 million, with a median of $670,000.Smart contract incidents were the most common attack type, involving 71 incidents and causing $228 million in losses. Q3 was the most severe quarter for losses since Q1 2025, when a $1.4 billion loss by Bybit pushed the quarterly total to $1.6 billion.Approximately $387 million of Q3 losses were returned or reversed, accounting for about 33% of gross losses. Among these, about $272 million was returned in the Liquid Network incident; the Tectonic incident reversed approximately $111.2 million in lending impact by rolling back 114 minutes of blockchain history, and Circle and Tether also froze approximately $340,000 related to funds stolen from Bitget. Operators additionally absorbed $410 million in user losses, leaving approximately $384 million still not returned or covered. (Cointelegraph)
Liquid Network redemption freeze hits 35 days, attackers still hold $49.69 million in Bitcoin, protocol support rate drops to 86%
Odaily News: The LBTC-to-Bitcoin redemption operation on Bitcoin sidechain project Liquid Network has been suspended for 35 days. As of October 11, 2026, the project maintains an 86% support rate. Attackers previously exploited a vulnerability in the Elements software to steal nearly 4,000 Bitcoins, of which approximately 3,400 have been returned. The wallet still holds 598.5 Bitcoins, worth $49.69 million.Blockstream rejected the attackers' demand for a 10% bounty and demanded the immediate return of the remaining Bitcoin. Liquid Network stated that an independent external security audit of Elements v23.3.4 is underway, and the Liquid Federation has simultaneously updated the PAK list and placed all redemption keys in cold storage.There is currently no specific date for resuming redemption operations. Some LBTC holders have migrated funds through applications such as Sideswap and Sideshift.ai. One user reported that due to insufficient liquidity, the migration took several weeks, with spreads and fees totaling approximately 5%. (Bitcoin.com News)
Bitcoin Pioneer Adam Back's Multiple Ventures Hit Setbacks: BSTR Ordered to Pay $15 Million Breakup Fee
Odaily News — Multiple Bitcoin ventures associated with Bitcoin pioneer and Blockstream co-founder Adam Back have recently suffered a series of setbacks: the merger between BSTR Holdings, the Bitcoin treasury project he championed, and a SPAC under Cantor Fitzgerald has been terminated, with BSTR ordered to pay a $15 million breakup fee; Blockstream Mining, the Bitcoin mining operation he co-founded and in which he holds a minority stake, along with its partner Exacore, has faced multiple lawsuits following its spin-off from Blockstream, accused of owing equipment payments, electricity bills, and customer deposits, with related financing totaling approximately $2 billion; meanwhile, Liquid Network, the Bitcoin sidechain initiated by Blockstream, suffered a hack in which approximately 4,000 BTC were stolen, of which 3,400 have been returned, with the hacker still retaining approximately $47 million worth of Bitcoin. (Bloomberg)
Liquid Attack Leaves L-BTC Redemptions Paused, Attacker Holds Over $51 Million in Bitcoin
Odaily News: Canadian Bitcoin exchange and wallet company Bull Bitcoin stated that due to the Liquid Network attack on September 6, users are temporarily unable to redeem L-BTC back to Bitcoin through the platform, and redemption operations are still pending resumption.Bull Bitcoin expects the related redemption service to potentially resume within 30 days, but stated that this expectation is not guaranteed. Due to its reliance on the L-BTC redemption mechanism to balance inventory, the platform has temporarily closed inbound Lightning Network payments.In this attack, the attacker transferred out nearly 4,000 Bitcoin from the protocol, later returning approximately 3,400; currently still holding 598.50 Bitcoin, valued at over $51 million. Liquid Network stated on September 17 that block production, network transactions, and L-BTC transfers have returned to normal. (Bitcoin.com News)
Liquid Network to Gradually Resume BTC and LBTC Redemption, Network Recovery Enters Final Stage
Liquid Network’s official announcement regarding phased recovery progress states that network recovery work has entered the final stage, with key priorities including strengthening security mechanisms, conducting independent audits, and gradually restoring pegged asset redemption functionality. In terms of functional restoration, the network will first progressively enable semi-automated BTC and LBTC exchange services in coordination with participating exchange providers, with no protocol-level transaction volume limits applied to the service itself. In the subsequent phase, Liquid Network will restore 1:1 Bitcoin reserve backing across the network, followed by gradually reactivating Federation redemption functionality for authorized PAK key holders. However, the complete restoration of these features remains contingent upon the successful completion of remaining security checks and operational requirements.
Q3 Crypto Hacking Losses Reach $1.18 Billion, Driven by Bitget and Liquid Vulnerabilities
据 Cointelegraph 报道，安全公司 Hacken 发布 2026 年 Q3 报告显示，第三季度加密货币黑客攻击事件共 107 起，总损失达 11.8 亿美元，为 2025 年 Q1 Bybit 事件（损失 16 亿美元）以来最严重的季度。 其中 77%（约 9.06 亿美元）损失源于第三方供应商、开发工具或未纳入安全审计的基础设施漏洞。四大主要事件分别为：Bitget 黑客攻击（3.87 亿美元）、Liquid Network 漏洞（3.2 亿美元）、Tectonic 漏洞（1.2 亿美元）及 Coldcard 固件漏洞（1.15 亿美元），合计占总损失约 80%。智能合约为最高频攻击向量，涉及 71 起事件，损失 2.28 亿美元。 在资金追回方面，约 3.87 亿美元（33%）被归还或逆转，其中"白帽黑客"归还 Liquid Network 被盗资金 2.72 亿美元，Cronos 验证者回滚 114 分钟区块链历史追回 1.11 亿美元；运营商另行垫付 4.1 亿美元补偿用户损失，但仍有约 3.84 亿美元（32%）既未追回也未获赔付。
In Q3 2026, cryptocurrency hacks caused $1.18 billion in losses, with Bitget and Liquid Network incidents accounting for $707 million combined
Odaily News: Security firm Hacken disclosed that a total of 107 cryptocurrency hacking incidents were recorded in Q3 2026, with total losses amounting to $1.18 billion. Of that, approximately $906 million stemmed from compromised vendors, developer tools, disclosed but undeployed fixes, and infrastructure outside audit scope, accounting for roughly 77% of quarterly losses.Quarterly losses were mainly concentrated in four incidents: crypto trading platform Bitget suffered $387 million in losses from an attack, Liquid Network lost $320 million to exploitation, Tectonic lost $120 million to exploitation, and a Coldcard firmware vulnerability caused approximately $115 million in losses. About 80% of losses were concentrated in the above incidents, while 98 incidents resulted in losses below $10 million, with a median of $670,000.Smart contract incidents were the most common attack type, involving 71 incidents and causing $228 million in losses. Q3 was the most severe quarter for losses since Q1 2025, when a $1.4 billion loss by Bybit pushed the quarterly total to $1.6 billion.Approximately $387 million of Q3 losses were returned or reversed, accounting for about 33% of gross losses. Among these, about $272 million was returned in the Liquid Network incident; the Tectonic incident reversed approximately $111.2 million in lending impact by rolling back 114 minutes of blockchain history, and Circle and Tether also froze approximately $340,000 related to funds stolen from Bitget. Operators additionally absorbed $410 million in user losses, leaving approximately $384 million still not returned or covered. (Cointelegraph)
Liquid Network redemption freeze hits 35 days, attackers still hold $49.69 million in Bitcoin, protocol support rate drops to 86%
Odaily News: The LBTC-to-Bitcoin redemption operation on Bitcoin sidechain project Liquid Network has been suspended for 35 days. As of October 11, 2026, the project maintains an 86% support rate. Attackers previously exploited a vulnerability in the Elements software to steal nearly 4,000 Bitcoins, of which approximately 3,400 have been returned. The wallet still holds 598.5 Bitcoins, worth $49.69 million.Blockstream rejected the attackers' demand for a 10% bounty and demanded the immediate return of the remaining Bitcoin. Liquid Network stated that an independent external security audit of Elements v23.3.4 is underway, and the Liquid Federation has simultaneously updated the PAK list and placed all redemption keys in cold storage.There is currently no specific date for resuming redemption operations. Some LBTC holders have migrated funds through applications such as Sideswap and Sideshift.ai. One user reported that due to insufficient liquidity, the migration took several weeks, with spreads and fees totaling approximately 5%. (Bitcoin.com News)
Liquid Network Advances Security Audit and PAK List Update to Prepare for Resuming Fund Migration Operations
Liquid Network has officially released an ecosystem progress update. It is currently undergoing an independent external security audit of Elements v23.3.4 to provide additional security verification. Meanwhile, the Liquid Consortium is coordinating updates to the Emergency Key (PAK) list, including replacing existing entries, and ensuring all peg-out keys are securely stored in cold storage. These measures aim to restore fund peg-out functionality while maintaining security, and the team expects to announce further progress on the restoration operations in the near future.
Liquid Network hacker still holds 598.5 bitcoins, L-BTC-to-bitcoin redemption channel paused for 11 days
Odaily News: The Liquid Network attacker has returned 3,400 bitcoins after the September 6 exploit, accounting for approximately 85% of the transferred assets; they currently still hold 598.50 bitcoins, worth over $45 million.Blockstream, the digital asset infrastructure company responsible for maintaining the Liquid Network, has refused to pay a ransom for the remaining assets and is demanding the return of the relevant bitcoins. The network shows 4,234.76 L-BTC in circulation, while the bitcoin reserves stand at only 3,632.23.The L-BTC-to-bitcoin redemption function has still not been restored, with Sideswap stating that redemptions are currently unavailable; Blockstream founder Adam Back said that L-BTC will be backed 1:1 by bitcoin reserves and reminded holders not to sell L-BTC off-market at a discount.As of now, Blockstream has not yet issued an announcement that "redemptions are live." The attacker's wallet continues to receive on-chain messages and has been subjected to address poisoning attacks and scam messages, with the related attacks inducing transfers by generating visually similar addresses. (Bitcoin.com News)
Related news
Yilihua: Crypto Trading Is a Counter-Intuitive Discipline, Patiently Wait for the Best Bottom-Fishing Opportunity
Yi Lihua, founder of Liquid Capital, posted: "Actually, the trading process is extremely difficult. When we insisted on being bullish, there were multiple pullbacks along the way; when we reached 86 and insisted on expecting a pullback, there were likewise multiple rebounds, even reaching 87. Each time it hit 81 or 80, it immediately rebounded to the key level of 84. For a whole month it fluctuated back and forth—this is also why we kept repeating ourselves. Stick to the principle: don't be thinking about trading all the time. Rallies don't move in a straight line, and pullbacks aren't either. At the same time, when expecting a pullback, don't short—patiently wait for the best bottom-fishing moment. I founded and manage three different funds—crypto investment, crypto trading, and AI technology—and the hardest of them is crypto trading. It is entirely a counter-intuitive discipline. For example, in the moments of extreme panic that lie ahead, can you bottom-fish with full confidence? Buffett got stuck in Google, and Duan Yongping got stuck in Pop Mart, but I believe these are all temporary. AI will keep creating miracles, and the money printer won't stop either. So quality AI stocks and crypto assets are the trend—if you pick the right bottom, you'll never get stuck."
Yi Lihua: The End of the Black Swan Impact and Midterm Elections Marks the Best Opportunity to Buy the Dip
Odaily reports: Liquid Capital founder Yi Lihua posted on X platform, stating: "We repeatedly called for a pullback every day, but never expected the strong support level of $79,000 to be broken by a black swan event. This was not part of the plan. The originally planned $75,000 and $71,000 levels need to be re-observed and adjusted due to changed circumstances. However, the end of the black swan impact and the midterm elections marks the arrival of the best opportunity to buy the dip."
Yilihua: Bullish on This Cycle's Trend, but the Industry Is at a Trough, with ETH Price Less Than Half of What It Was 6 Years Ago
Odaily reports: Liquid Capital founder Yilihua posted: "We held the view for 2 months that Bitcoin would pull back to $86,000, just as we saw the end of the rebound to $84,000 in May. Looking back over the past year or so since we called for bottom-fishing in ETH at $1,450, we have been clearly wrong only once. We must always grow from our mistakes, and patience is the best strategy. In fact, most of the market does not match Buffett's value investing, and the crypto industry in recent years has also shown this. The price of ETH is even less than half of what it was 6 years ago, and the BTC price is the same as it was 3 years ago. Although this cycle's trend looks bullish, the industry is indeed at a trough, and AI has drawn away a large wave of talent and capital."
Yilihua: Since Bitcoin's pullback from $86,000, it has been ranging for a long time, and I believe there will be opportunities to buy the dip later
Odaily reports: Liquid Capital founder Yilihua posted on the X platform: "Actually, investing and trading test patience the most. At the time, ETH fluctuated around $3,000 for several periods, and those who couldn't hold back easily bought in halfway up the mountain. Recently, since the pullback from $86,000, it has also been ranging for a long time. Controlling yourself is very important, and I believe there will be very good opportunities to buy the dip later. The dividend period of the crypto industry has passed. Only with genuine cognition and improved mental strength can one obtain excess returns. I have always believed that everyone's IQ is about the same. Being able to identify at a glance mentally ill people and very low-level clout chasers, and focusing time and attention on valuable and real things, is the most fundamental difference between people."
Liquid Network to Gradually Resume BTC and LBTC Redemption, Network Recovery Enters Final Stage
Liquid Network’s official announcement regarding phased recovery progress states that network recovery work has entered the final stage, with key priorities including strengthening security mechanisms, conducting independent audits, and gradually restoring pegged asset redemption functionality. In terms of functional restoration, the network will first progressively enable semi-automated BTC and LBTC exchange services in coordination with participating exchange providers, with no protocol-level transaction volume limits applied to the service itself. In the subsequent phase, Liquid Network will restore 1:1 Bitcoin reserve backing across the network, followed by gradually reactivating Federation redemption functionality for authorized PAK key holders. However, the complete restoration of these features remains contingent upon the successful completion of remaining security checks and operational requirements.
Q3 Crypto Hacking Losses Reach $1.18 Billion, Driven by Bitget and Liquid Vulnerabilities
据 Cointelegraph 报道，安全公司 Hacken 发布 2026 年 Q3 报告显示，第三季度加密货币黑客攻击事件共 107 起，总损失达 11.8 亿美元，为 2025 年 Q1 Bybit 事件（损失 16 亿美元）以来最严重的季度。 其中 77%（约 9.06 亿美元）损失源于第三方供应商、开发工具或未纳入安全审计的基础设施漏洞。四大主要事件分别为：Bitget 黑客攻击（3.87 亿美元）、Liquid Network 漏洞（3.2 亿美元）、Tectonic 漏洞（1.2 亿美元）及 Coldcard 固件漏洞（1.15 亿美元），合计占总损失约 80%。智能合约为最高频攻击向量，涉及 71 起事件，损失 2.28 亿美元。 在资金追回方面，约 3.87 亿美元（33%）被归还或逆转，其中"白帽黑客"归还 Liquid Network 被盗资金 2.72 亿美元，Cronos 验证者回滚 114 分钟区块链历史追回 1.11 亿美元；运营商另行垫付 4.1 亿美元补偿用户损失，但仍有约 3.84 亿美元（32%）既未追回也未获赔付。