White Hat Hacker Returns Most of $340 Million Stolen from Liquid Network

Massive Crypto Heist Highlights Security Flaws in Settlement Exchange

In a dramatic turn of events, a hacker seized thousands of bitcoins valued at roughly $340 million from a settlement platform that serves multiple cryptocurrency exchanges. The breach occurred on the Liquid Network, a service launched in 2018 by Blockstream, prompting an immediate suspension of operations while investigators assess the damage.

Blockstream disclosed in a post on X on Sunday that the perpetrator was a “white hat” hacker who exploited a vulnerability in the network’s wallet. The individual claimed they would return the stolen assets provided the underlying bug was addressed.

Blockstream’s post on X: “A white hat hacker stole funds from the network’s wallet. Operations are paused until the incident is resolved.”

Former Blockstream executive Samson Mow reported on Monday that the bug had been patched. Approximately 3,400 of the roughly 4,000 stolen bitcoins have already been returned. The hacker still retains about 600 bitcoins, worth an estimated $47 million.

Mow added that the platform will remain offline until further security enhancements are implemented and verified.

The incident now ranks among the largest digital‑currency thefts on record, according to the Rekt leaderboard, which tracks major crypto breaches.