A hacker stole $340M in a crypto heist, then returned most of it

A hacker executed a heist at Liquid Network, a settlement exchange used by multiple cryptocurrency exchanges, stealing thousands of bitcoins worth approximately $340 million. This represents one of the largest known cryptocurrency thefts this year. Liquid Network, established in 2018 by Blockstream, announced on X that a "white hat" hacker had stolen the funds from their wallet.

The company has paused its operations until the incident is resolved. The hacker's identity remains unknown, but reports suggest they allegedly exploited a bug to withdraw the funds. The hacker claimed they would return the funds if Blockstream fixed the bug. Former Blockstream executive Samson Mow stated on X that the company had corrected the bug.

Around 3,400 of the roughly 4,000 stolen bitcoins, or about $47 million, have been returned. The remaining approximately 600 bitcoins, equivalent to $47 million, are still under the hacker's control. According to the Rekt leaderboard, which monitors cryptocurrency thefts, Mow said operations will stay suspended until additional security enhancements are implemented before resuming.