Liquid Network Hack Fallout Continues: $45 Million Still Held by Attackers

More than a week after attackers drained close to 4,000 BTC from the Liquid Network in a September 6 exploit, the incident remains unresolved. While roughly 85% of the funds have been returned, the attackers still hold 598.50 BTC, worth more than $45 million. Blockstream, which maintains the Liquid Network, has refused to pay for the remaining coins and is demanding their return instead, leaving a shortfall between the L-BTC token supply and actual bitcoin reserves.

Although the network itself has resumed operating, L-BTC to BTC peg-out redemptions remain suspended. Blockstream founder Adam Back has publicly promised the 1:1 peg will eventually be honoured and has urged token holders not to sell L-BTC at a discount in over-the-counter deals. No official announcement confirming restored redemptions has been made since the exploit.

Adding to the risk, the attacker's wallet has reportedly been targeted by address poisoning scams, where fraudsters create lookalike wallet addresses designed to trick victims into sending funds to the wrong destination. This incident follows similar attacks on other bitcoin-backed bridges, including Symbiosis and Nomic, raising broader concerns about the security of cross-chain bitcoin infrastructure.