{"id":77831,"date":"2026-09-07T11:29:44","date_gmt":"2026-09-07T11:29:44","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/safe-to-return-the-funds\/"},"modified":"2026-09-07T11:29:44","modified_gmt":"2026-09-07T11:29:44","slug":"safe-to-return-the-funds","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/safe-to-return-the-funds\/","title":{"rendered":"&#8216;Safe to Return the Funds&#8217;"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Liquid Network is paused after hackers drained roughly BTC 4,000 from its federation wallet.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">L-BTC is now backed by just 4.7% of the bitcoin required to maintain its 1:1 peg.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The biggest question is what L-BTC will be worth when peg-outs resume \u2014 and who will absorb any shortfall.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>In the most recent development, <a href=\"https:\/\/news.bitcoin.com\/crypto-news\/blockstream-hunts-white-hats-after-4000-btc-leaves-liquid\/\">attackers, who present themselves as a \u201cwhite hacker,\u201d<\/a> said they\u2019ll return \u201cthe money back safely\u201d once a bug that allowed this theft is fixed. To which the Blockstream team said, \u201cYes, thank you,\u201d later adding that <a href=\"https:\/\/mempool.space\/tx\/3c101c8e053a6cbc7c4455e4fec017c8f2962ed86dee70e72fb8bafbb1d7bde9\" target=\"_blank\" rel=\"noopener noreferrer\">\u201cBridge nodes are patched, safe to return the funds.\u201d<\/a> However, in an earlier message, the attacker said they\u2019ll return \u201cmost\u201d of the money. Meanwhile, an unsigned message appeared onchain offering a 98 bitcoin bounty, <a href=\"https:\/\/mempool.space\/tx\/9766ca28b1ddf5099c0a87db80ae9fd54e2f719a8e36a15dc50ac1c2986b8fd1?showDetails=true\" target=\"_blank\" rel=\"noopener noreferrer\">possibly coming from an impersonator<\/a>. There have been no official statements from Blockstream on the matter.<\/p>\n<p>In either case, the whole network\u2019s ecosystem is on pause while its participants face uncertainty over when they\u2019ll be able to use their assets on the network and what those assets will be worth.<\/p>\n<p>Bridge nodes have been disabled, and exchanges have been asked to pause L-BTC deposits and withdrawals.<\/p>\n<h2>The L-BTC Question<\/h2>\n<p>The key question concerns L-BTC, the network\u2019s native currency. The coin is supposed to be backed 1:1 by bitcoin, but the hackers drained roughly 4,000 BTC from Liquid Network\u2019s federation wallet on Sunday, meaning L-BTC is now backed by only 4.7% of the required assets, as only 197 BTC is left in the federation\u2019s wallet. Therefore, while Liquid Network users can\u2019t move their funds on the network, it\u2019s still unknown what will happen to the value of L-BTC, which remains in users\u2019 wallets, when the network reopens.<\/p>\n<p>However, Mempool.space developer Mononaut argues that a sidechain token like L-BTC remains a distinct asset with its original limited supply even if a bug drains the backing BTC on the mainnet, <a href=\"https:\/\/x.com\/mononautical\/status\/2096833703901343922\" target=\"_blank\" rel=\"noopener noreferrer\">but there might be a much bigger problem<\/a>.<\/p>\n<p>\u201cActually I suppose if it\u2019s an inflation bug, the L-BTC is no longer in limited supply and you\u2019re just rekt,\u201d the developer said, as the whole industry awaits more details.<\/p>\n<h2>Nothing Moves on Liquid Network<\/h2>\n<p>In either case, other assets on the network, including USDT, have been unaffected, although they can\u2019t be moved either. For example, bitcoin escrow service Tetrapolar informed its users that Liquid Network-powered <a href=\"https:\/\/x.com\/TetrapolarHQ\/status\/2096826372475982012\" target=\"_blank\" rel=\"noopener noreferrer\">\u201cUSDT deals will not work at this time.\u201d<\/a> The service said they\u2019re not using L-BTC.<\/p>\n<p>Some other users said they were <a href=\"https:\/\/x.com\/lunormin\/status\/2096847089116590270\" target=\"_blank\" rel=\"noopener noreferrer\">lucky to swap L-BTC for onchain bitcoin<\/a> before the incident happened. There aren\u2019t many reports from affected users and platforms about how being unable to access their funds has affected them, except Sideswap, Aqua Wallet, and Stokr confirming that their users won\u2019t be able to use Liquid Network for now.<\/p>\n<h2>The Silent Federation<\/h2>\n<p>Meanwhile, Liquid Federation members (81 in total), such as Bitfinex, Boltz, Hodl Hodl, Specter, Coinshares, Komainu, Xapo, Bull Bitcoin, Ledger, and many others haven\u2019t issued public statements about the Liquid Network drama, including about L-BTC balances on their own books. (15 of the federation\u2019s members run the secure infrastructure that proposes and signs blocks \u2014 with at least 11 of those 15 required to sign off on each one.) At the time of writing, even Blockstream CEO Adam Back, whose company created Liquid but is not a federation member and serves as its technical provider, hasn\u2019t posted anything about the matter.<\/p>\n<p>Therefore, the scale of the effects on the industry and its specific participants is unknown, while everyone is waiting until the network restarts. It\u2019s also unclear at what price L-BTC will trade once peg-outs reopen, especially if the attacker returns not all the funds and someone will need to absorb the gap. In theory, this could be the federation, comprised of multiple major players in the cryptoasset industry; Blockstream (valued at $3.2 billion in 2021), the developer of Elements software, in which a bug was exploited; or just regular people holding this asset.<\/p>\n<p>Until all these questions are resolved, both the Liquid Network and its native currency are in something of a Schr\u00f6dinger\u2019s state \u2014 they exist, but can\u2019t be used for the time being.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/security\/blockstream-to-liquid-network-hacker-safe-to-return-the-funds\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Liquid Network is paused after hackers drained roughly BTC 4,000 from its federation wallet. L-BTC is now backed by just 4.7% of the bitcoin required to maintain its 1:1 peg. The biggest question is what L-BTC will be worth when peg-outs resume \u2014 and who will [&hellip;]<\/p>\n","protected":false},"author":3947362405,"featured_media":77832,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77831"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362405"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=77831"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77831\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/77832"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=77831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=77831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=77831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}