Hacker attack on Blockstream's Liquid network: 4 thousand of 4200 Bitcoins were stolen

The Liquid network developed by Blockstream, one of the important and well-known companies in the Bitcoin world, was also hacked. 4 thousand of the 4200 Bitcoins in the reserve supporting Liquid were stolen.

They said "We are 'white-hat'" and left a message

However, the heartwarming development was again announced by hackers. The attackers left the message "We are white-hat hackers. Contact us on-chain" in one of the transactions on the Bitcoin blockchain. As it is known, hackers known as "white-hat attackers" generally send back the stolen funds. Since these types of attackers have an idealistic point of view, they carry out their attacks to send loud messages or to correct errors in systems.

“Correct the mistake and we will send it back”

Later, the Blockstream team and the hackers communicated through the low number of satoshis they sent to each other. Hackers asked, “Is it appropriate for us to send most of the funds back to the Liquid Federation address?” they asked, but they required that the error be corrected first.

Information sharing will continue as developments on the subject are updated.

How does the Liquid network work?

Liquid Network, developed by Blockstream company led by Adam Back, emerged to facilitate difficult and slow transactions on the Bitcoin network.

Those who make transactions on this chain lock the BTCs they want to move into the system and obtain Liquid Bitcoin (LBTC). After the transactions are completed, LBTCs are delivered and the locked Bitcoins are taken back.

Here, the hackers who found the vulnerability in the system managed to steal BTCs by bypassing the Liquid Federation, that is, the multi-signature mechanism on the platform that protects the system.