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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 $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 · 8d agoExploit / PoC in the wild

CISA gives federal agencies two weeks to patch Microsoft bug exploited in DPRK campaign

CISA orders federal agencies to patch exploited Windows Winsock zero-day CVE-2026-68820 by August 25, used by Lazarus in Operation Dream Job.

CISA ordered federal agencies to patch Windows Winsock vulnerability CVE-2026-68820, rated 7/10, by August 25 after confirming exploitation; no workaround exists and a restart is required. Check Point found Lazarus Group hackers impersonated Lockheed Martin and Enveil recruiters on LinkedIn, sent malicious PDFs enabling long-term remote access, then used the zero-day to escalate from limited access to full system control. Targets spanned defense sectors including surveillance, drones and robotics in France, Germany, Brazil and India, as part of Operation Dream Job tracked since 2020.

The Record · Aug 12, 2026Exploit / PoC in the wildCVE-2026-688201