Blockstream Fixes Vulnerability, Safely Returning 4,000 BTC
Blockstream has announced that it has fixed a vulnerability, allowing for the safe return of 4,000 BTC. Previously, hackers extracted approximately 4,000 BTC from the Liquid network and expressed their willingness to return the funds, contingent upon the vulnerability being addressed. The negotiation process was conducted publicly through Bitcoin OP_RETURN messages. Initially, the hackers proposed to return "most" of the BTC but later requested that the vulnerability be fixed first, stating that they needed to ensure every node was patched before confirming the return of the funds. The hackers sent encrypted details of the vulnerability to Blockstream. In response, Blockstream issued a PGP-signed OP_RETURN message stating that the cross-chain bridge nodes had been patched and that the funds could be safely returned. Currently, 3,998.5 BTC remains under the hackers' control.
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