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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.
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Cosmos EVM Flaw Exploited After Cosmos Labs Knew Every Blockchain Running It Was Vulnerable
Attackers exploited a critical Cosmos EVM balance bug (GHSA-7g4w-cg88-2cq2) to drain funds from six blockchains; fixed in v0.6.2 and v0.7.2.
Cosmos Labs disclosed that a critical balance-handling flaw in the shared Cosmos EVM module (GHSA-7g4w-cg88-2cq2, no CVE) was exploited to drain funds from six blockchains between August 20 and 25, 2026. The bug, reported April 25 and initially judged harmless, lets vesting accounts delegate more than their spendable balance, wrapping balances to roughly 2^256 and triggering unintended mint/burn in reconciliation, potentially halting chains or burning victims' holdings. Fixes shipped in v0.6.2 and v0.7.2 on August 19 as state-breaking coordinated network upgrades; operators who cannot upgrade must halt their chains. The post-mortem notes the team used public silent patching for a fund-threatening issue, contrary to its own bug bounty policy, and that eleven deployments had never registered with its security channels.
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⚡ Weekly Recap: VMware Exploits, Windows 0-Day, MCP Attacks, Browser Hijacks and More
Weekly recap: suspected China-nexus APT exploited VMware vCenter CVE-2026-59310, Lazarus used Windows zero-day CVE-2026-68820, and macOS flaw dropped Monero miners.
The week's top stories included a suspected China-nexus APT exploiting VMware vCenter CVE-2026-59310 (CVSS 9.8), a directory-traversal flaw enabling arbitrary code execution, with backdoors, reverse SSH and Babuk-derived ransomware deployed, per QUIRSO. NCSC-NL reported active exploitation of macOS Screen Sharing flaw CVE-2026-65400 (CVSS 9.8) to install Monero miners on systems with port 5900 exposed. Lazarus Group exploited Windows zero-day CVE-2026-68820 (CVSS 7.0) in Operation Dream Job, delivering ForestTiger and Troy backdoors to defense and aerospace targets. GeoServer patched a critical SQL injection flaw exploited within hours of disclosure, and Jamf analyzed the new Amnesia Stealer for macOS with live browser control.
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⚡ Weekly Recap: Instagram Account Hacks, Android Zero
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