News Heat Trend
Project Overview
The Liquid Network is a Bitcoin layer-2 solution that enables fast, confidential settlement and issuance of digital assets, such as stablecoins, security tokens, and other financial instruments, on top of the Bitcoin blockchain.
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.
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.
Losses up about 745% month-over-month, with 56 major attacks in the crypto industry in October
Odaily reports: According to PeckShield data, in October 2026 there were 56 major security incidents in the crypto industry, with cumulative losses of approximately $6.48 billion, an increase of about 745% compared with approximately $766 million in September. Among them, the Binance security incident caused losses of approximately $6.3 billion, and another approximately $3 billion in assets has been frozen, making it the largest crypto industry security incident by loss amount so far this year, exceeding Bitget's approximately $387 million and Liquid Network's approximately $320 million, which ranked second and third respectively. In the Liquid Network incident, approximately $285 million has been recovered. As of October 31, the top ten attacks by annual loss amount had caused combined losses of approximately $8.6 billion, accounting for 92.3% of the total losses for the year; this statistic has not yet deducted frozen and recovered funds. In addition to the above incidents, Drift, KelpDAO/LayerZero, COLDCARD Wallet, and others also ranked among the top ten on the annual loss list.
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
Losses up about 745% month-over-month, with 56 major attacks in the crypto industry in October
Odaily reports: According to PeckShield data, in October 2026 there were 56 major security incidents in the crypto industry, with cumulative losses of approximately $6.48 billion, an increase of about 745% compared with approximately $766 million in September. Among them, the Binance security incident caused losses of approximately $6.3 billion, and another approximately $3 billion in assets has been frozen, making it the largest crypto industry security incident by loss amount so far this year, exceeding Bitget's approximately $387 million and Liquid Network's approximately $320 million, which ranked second and third respectively. In the Liquid Network incident, approximately $285 million has been recovered. As of October 31, the top ten attacks by annual loss amount had caused combined losses of approximately $8.6 billion, accounting for 92.3% of the total losses for the year; this statistic has not yet deducted frozen and recovered funds. In addition to the above incidents, Drift, KelpDAO/LayerZero, COLDCARD Wallet, and others also ranked among the top ten on the annual loss list.
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)
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)