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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 News · 8d agoExploit / PoC in the wild

Hackers drain $320M in Bitcoin from Liquid Network, claim they're the good guys

Attackers withdrew about 4,000 BTC (~$320M) from Liquid Network's federation wallet via a SideSwap peg-out, claiming whitehat status.

Hackers drained roughly $320 million in Bitcoin — about 4,000 BTC, 95% of holdings — from the federation wallet backing Blockstream's Liquid Network sidechain. The withdrawal occurred through SideSwap using its Peg-out Authorization Key (PAK), yet no PAK appears to have been compromised, and the exact mechanism remains under investigation. The actors embedded an on-chain message identifying themselves as whitehats, asked Blockstream to patch federation nodes first, and promised to return most of the funds after fixes are confirmed. Liquid disabled its bridge nodes and asked exchanges to suspend L-BTC deposits and withdrawals; other Liquid assets and the Bitcoin network were unaffected.

The Register · Security · 9d agoExploit / PoC in the wild

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 Affairs · 7d agoExploit / PoC in the wild

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

A hacker exploited a bug to steal about 4,000 BTC (~$340M) from Blockstream's Liquid Network, then returned roughly 3,400 BTC after the bug was fixed.

A hacker exploited a bug to withdraw roughly 4,000 bitcoins worth about $340 million from Liquid Network, a settlement service launched in 2018 by crypto firm Blockstream and used by several cryptocurrency exchanges. Liquid Network paused operations, and the hacker, described as a white hat, offered to return the funds once the bug was fixed. Former Blockstream executive Samson Mow said the bug was fixed and about 3,400 BTC (~$293M) returned, leaving roughly 600 BTC (~$47M) under the hacker's control pending further security improvements. Rekt's leaderboard ranks the heist among the largest cryptocurrency thefts to date.

TechCrunch · Security · 8d agoExploit / PoC in the wild

Weekly Cybersecurity Newsletter Bulletin – Microsoft 0-day, FortiOS, PAN-OS Flaw, Revolut Data Breach, and 20+ Stories

Weekly roundup: Microsoft patches 973 flaws including two actively exploited zero-days; FortiOS CAPWAP flaw deploys PivotC2 RAT; PAN-OS root RCE disclosed.

Microsoft's September 2026 Patch Tuesday fixed 973 vulnerabilities, including two zero-days under active exploitation: CVE-2026-85880 (Windows ALPC) and CVE-2026-81963 (Windows Update Stack), both elevation-of-privilege bugs. SOCRadar reported active exploitation of CVE-2025-25249 (CVSS 9.8) in FortiOS CAPWAP, deploying a Node.js RAT called PivotC2 that exfiltrates Exchange mailboxes to Wasabi cloud storage; 178 devices were compromised out of 30,000 scanned IPs, attributed to a Russian-speaking financially motivated group. Palo Alto disclosed CVE-2026-0310, a 9.2-rated buffer overflow enabling root code execution on PA-Series firewalls, and Fortinet disclosed CVE-2026-84393, a ZTNA certificate validation MITM flaw. Cyera also revealed CVE-2026-6471 ('PostGREShell'), a 12-year-old PostgreSQL logical-decoding flaw allowing code execution via REPLICATION-privileged accounts.

BGP hijack infecting networks caused by a comedy of errors that’s not funny at all

Attackers BGP-hijacked Softaculous IP space via Hetzner routing lapses to push malicious Virtualizor updates to hosting servers.

Unknown attackers hijacked the 162.55.80.0/24 prefix used by Softaculous' Virtualizor update service by abusing lax routing security at hosting provider Hetzner Online, announcing the range through AS6204, AS62390, and AS24940 with a forged but RPKI-valid origin. The hijack pulsed intermittently over roughly 33 hours, delivering modified update packages to Virtualizor servers, which lacked cryptographic code signing for updates. Softaculous says only a small number of servers were likely affected but cannot produce a definitive list, urging administrators to treat every Virtualizor server as in scope for checks.

Ars Technica · Security · 14d agoExploit / PoC in the wild1