4,000 Bitcoin Worth $320 Million Withdrawn After Liquid Network Hack
The report adds an unusual development to the incident: the hacker is now communicating with Liquid Network maintainers through on-chain Bitcoin transactions and reportedly intends to return the stolen BTC once the vulnerability has been fixed.
Hacker Communicates Through Bitcoin Transactions
According to Watcher.Guru, the hacker has used on-chain Bitcoin transactions to communicate directly with network maintainers following the incident. The reported withdrawals amount to 4,000 Bitcoin, valued at $320 million.
Rather than simply moving the funds without explanation, the attacker has reportedly indicated an intention to return the Bitcoin after the underlying vulnerability is addressed. The information does not specify the exact messages sent through the transactions or identify the technical weakness responsible for the hack.
The use of blockchain transactions as a communication channel gives maintainers a public record of activity associated with the funds. Bitcoin transactions are recorded on the blockchain, allowing movements from identified addresses to be monitored even when the identity of the person controlling those addresses is unknown.
Return of Funds Depends on Vulnerability Fix
The hacker's reported intention to return the BTC is conditional on the vulnerability being fixed. Watcher.Guru did not provide further details on what remediation would be required or whether the network maintainers have accepted the stated conditions.
The distinction between the reported withdrawal and the potential return of funds is significant. The 4,000 Bitcoin has already been withdrawn following the Liquid Network hack, while the proposed return remains an intention attributed to the hacker.
The incident therefore leaves two separate issues for maintainers to address: securing the vulnerability identified in the attack and tracking the movement of the withdrawn Bitcoin.
On-Chain Activity Remains the Key Indicator
The reported communications through Bitcoin transactions could provide maintainers with an additional channel for monitoring developments surrounding the incident. Any future movement of the affected Bitcoin would also be recorded on-chain.
At present, the information shared by Watcher.Guru does not confirm that the 4,000 BTC has been returned. It states that the hacker intends to return the funds after the vulnerability is fixed.
The next key development is therefore whether Liquid Network maintainers can resolve the reported vulnerability and whether the hacker follows through on the stated intention to return the $320 million in Bitcoin.
writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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