Product

Elements

0 mentions in 7 days · 2 in 30 days · 2 total · first seen Sep 8, 2026 · last 7d ago

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Hackers Drain $320 Million From Liquid Network, Then Return Most of It

Hackers exploited an Elements bug to drain about 4,000 BTC (~$320M) from Liquid Network's federation wallet, then returned 3,400 BTC after Blockstream patched.

An attacker drained roughly 4,000 of 4,200 BTC (~$320M) from Bitcoin's Liquid Network federation wallet on September 6 by exploiting a bug in Elements, the open-source code powering the sidechain, which allowed unbacked L-BTC tokens that were redeemed for real Bitcoin through SideSwap's authorized peg-out mechanism. The self-described white-hat attackers negotiated publicly via OP_RETURN on-chain messages, demanding the bridge nodes be patched before returning 3,400 BTC (~$262.6M) and keeping about 598 BTC (~$47M). Blockstream confirmed the affected bridge nodes were patched; the network remains paused while federation members complete security work, and experts debate whether the act legally constitutes extortion.

Security AffairsSep 8, 20:35 UTC · 7d agoExploit / PoC in the wild

Liquid Hackers Return 3,400 Bitcoin Taken via Elements Bug, Still Holding $47M in BTC

Hackers exploited an Elements bug to take ~4,000 BTC from Liquid Network, returned 3,400 BTC (~$265M), and still hold ~598.5 BTC (~$47M).

Attackers exploited a bug in Elements, the software behind Blockstream's Liquid Network Bitcoin sidechain, to create L-BTC and withdraw roughly 4,000 BTC (about $320 million) via SideSwap's Peg-out Authorization Key, roughly 95% of Liquid's reported reserves. They returned 3,400 BTC (about $265 million at ~$78,000 per BTC) to the federation address on September 7, keeping about 598.5 BTC (roughly $47 million). The group called itself white hats, demanded node patches before returning funds, and negotiated via on-chain and PGP-encrypted messages; Ledger CTO Charles Guillemet characterized the arrangement as extortion. Blockstream says the peg-out key and other keys were not compromised, updated software is deployed, and the network remains paused pending a coordinated restart.

The Hacker NewsSep 8, 14:54 UTC · 7d agoExploit / PoC in the wild

Appears with

vendor Blockstream 2 product Liquid Network 2 product L-BTC 2 vendor SideSwap 2 victim Liquid Network 2 vendor Galoy 1 vendor Ledger 1 vendor Bitrue 1 organization JAN3 1 organization SideSwap 1 product Bitcoin 1 organization Blockstream 1

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