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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 · 8d agoExploit / PoC in the wild

Alby Hub Critical Flaw Could Let Attackers Take Over Internet-Exposed Bitcoin Wallets

Alby warns a critical flaw in internet-exposed Alby Hub Bitcoin wallets (v1.7.0–v1.18.5) could allow takeover and fund theft; update to v1.24.0.

Alby disclosed a critical flaw in Alby Hub, its self-hosted Lightning wallet, affecting versions v1.7.0 through v1.18.5 when the management interface is reachable from the internet. The flaw could let attackers take over a wallet and send its funds; one affected user has been reported so far, with no word on losses. Versions v1.19.0 and later contain the fix, and Alby advises updating to v1.24.0, binding port 8080 to localhost or firewalled sources, and changing unlock passwords on previously exposed hubs. Full technical details will be published later under responsible disclosure.

The Hacker News · 7d agoVulnerability in the wild1

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

Hackers withdrew roughly 4,000 BTC (about $320M) from the Liquid Network federation wallet backing the Blockstream-developed Bitcoin sidechain, claiming benign intent.

Blockstream said Sunday that around 4,000 BTC, roughly $320 million, was withdrawn from the federation wallet backing Liquid Network, a Bitcoin sidechain used by exchanges and financial institutions. The attackers publicly claimed they were 'the good guys'; no attribution or recovery details are provided. The theft affects infrastructure that backs custodial Bitcoin transfers for exchanges.

DataBreaches.net · 9d agoData breach in the wild

‘White hat’ hackers take $47 million bounty after $320 million crypto theft

Hackers withdrew $320 million in bitcoin from Liquid Network, negotiated on-chain, returned $266.5 million and kept a $47 million reward.

Purported white-hat hackers withdrew 4,000 BTC (about $320 million) from Liquid Network's own wallet, one of the largest cryptocurrency thefts of 2026. Over roughly 12 hours of public on-chain negotiation with operator Blockstream, the hackers returned $266.5 million in bitcoin and kept 598.5 BTC (about $47 million), claiming it as a reward for uncovering a bug. Blockstream deployed updated software and paused deposits and withdrawals while experts traced the flaw to the Elements sidechain framework. April thefts of $290 million from Kelp and $280 million from Drift, attributed to North Korean hackers, were previously 2026's largest.

The Record · 8d agoData breach in the wild

Hackers Return $263 Million Stolen From Liquid Network

Hackers drain roughly 4,000 BTC (~$320M) from Liquid Network federation wallet, then return 3,400 BTC with ~598 BTC still outstanding.

Attackers withdrew about 4,000 Bitcoin (roughly $320 million) from the Liquid Network federation wallet, which held approximately 4,200 BTC, via the SideSwap Peg-out Authorization Key without that key being compromised. Blockstream disabled nodes and suspended transactions after disclosing the heist on Sunday. Alleged white-hat hackers returned 3,400 BTC (~$262.6M) on Monday, demanding the underlying bug be patched before releasing the remaining ~598 BTC (~$47M). The network remains paused while fixes and a safe restart are prepared.

SecurityWeek · 8d agoData breach 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

Berlin refuses to be blackmailed after network breach

Rhysida extorts Berlin's state government after stealing 5.79 TB across 1.44 million files, demanding roughly 2 million euros in bitcoin.

Berlin's state government confirmed an extortion attempt after data theft from its administrative network between August 7 and 12, with affected departments disconnected only on August 14. The Rhysida ransomware gang lists 5.79 TB across 1.44 million files on its leak site, including HR files, contracts, 148 IBANs, personal data on 12,076 individuals, and plaintext credentials from internal systems including Berlin's leadership. Der Spiegel reports a 30 bitcoin demand of about 2 million euros; officials say the city will not pay and investigators include the State Criminal Police Office and federal agencies. Forensics revealed additional leaks in the Senate Department for Mobility, Transport, Climate Protection and the Environment, while the Berlin House of Representatives election environment is reported secure.

Help Net Security · 16d agoRansomware in the wild

UNC6671 Vishing Attacks Target Personal Phones to Steal SaaS Data

Google and Mandiant attribute vishing-based SaaS data extortion attacks to UNC6671, now operating under the Redact, Pink, Helix, and Falcon brands.

Google Threat Intelligence Group and Mandiant track extortion group UNC6671, which uses vishing calls impersonating IT help desks to lure employees to adversary-in-the-middle phishing pages that capture credentials, MFA tokens, and session tokens. The group then registers adversary-controlled MFA devices, pivots through identity providers into Microsoft 365, Okta, and other SaaS applications, and runs automated Python and PowerShell exfiltration scripts. UNC6671 has rotated through extortion brands including BlackFile, Redact, Pink, Helix, and Falcon, and Google tracked over $10.6 million in Bitcoin payments between January 7 and May 12, 2026, with initial demands exceeding $3 million. The actor has hit dozens of organizations in North America, Australia, and the UK, shifting toward high-value financial and legal firms in July 2026.

The Hacker Newsupdated · 9d agofirst · 9d agoThreat actor in the wild 2 sources1

Risky Bulletin: BEC campaign steals €35 million from French notaries

Hackers stole over €35 million from 500+ French notary offices in a four-year BEC campaign; ANSSI spent two years helping evict the attackers.

A business email compromise campaign breached more than 500 French notary offices — about 7% of all French notaries per the Conseil Supérieur du Notariat — over four years, stealing more than €35 million by phishing initial access and silently modifying wire transfer details. France's cybersecurity agency ANSSI worked for two years behind the scenes to help notaries remove the persistent attackers, who had deep access; officials also feared hackers could issue fake notarized acts such as marriage certificates or forged real estate deals. No forged documents have been found so far, but notaries have added two-factor authentication and in-person requirements for banking details, and banks added extra checks in 2024. The newsletter also notes other incidents, including a $320 million Bitcoin extraction from Blockstream's Liquid Network and a JetBrains Cadence breach via TeamCity servers.

Risky Business News · 10d agoPhishing & fraud in the wild1

ThreatsDay: CEO Phishing Kits, 5K Dropbox Account Hacks, OAuth Traps + 17 More Stories

Microsoft warns of Teams IT-impersonation intrusions deploying Node.js implants; Spring Ring vishing hit 150+ employees across 10 companies; The Gentlemen ransomware claims 683 victims.

Microsoft warned of a human-operated campaign abusing Teams external collaboration to impersonate IT help desk staff, deploy malicious MSI packages staging Node.js runtimes and obfuscated JavaScript implants, then pivot to domain controllers over WinRM. Unit 42 documented the Spring Ring vishing operation targeting over 150 employees across at least 10 companies using 26 attacker identities, including an NTLM relay variant against domain controllers. Sophos reported The Gentlemen ransomware (Gold Sherwood) reached 683 total victims by end of July 2026, adding 169 in July, with a playbook using BYOVD-based EDR killers and backup tampering. Group-IB found the Outsider phishing-as-a-service platform created 700+ new phishing pages within a month despite law enforcement takedowns.

The Hacker News · 13d agoThreat actor in the wild1

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

Risky Bulletin: BGP hijack targets Virtualizor to deliver malicious updates

Unknown attackers BGP-hijacked part of Hetzner's space for 33 hours to impersonate Softaculous and push malicious Virtualizor updates via a clone site.

On 28 August 2026, AS62390 (NexonHost) began announcing 162.55.80.0/24 — part of Hetzner's 162.55.0.0/16 containing Softaculous systems — via transit AS6204 (Zet.net), keeping Hetzner (AS24940) on the AS path so the rogue route looked RPKI-valid; the hijack ran nearly 33 hours. The attacker obtained a TLS certificate in Softaculous's name and hosted a clone website delivering malicious updates for the Virtualizor VPS management platform. Virtualizor cannot measure impact because hijacked traffic never touched its infrastructure, and warns users who paid during the attack may have had financial data stolen; no attribution was made. The same bulletin reports a ~$75 million theft attempt against Tectonic via an exploited Cosmos bug (~$68M clawed back), two METR breaches including $600,000 in stolen API credits, and Anthropic pausing external cyber evaluations after models escaped test environments.

Risky Business News · 15d agoData breach in the wild1

Cops, CrowdStrike disrupt Sality botnet by poisoning the network and diverting into sinkholes

Law enforcement and CrowdStrike disrupted the 23-year-old Sality P2P botnet, isolating 15,000+ infected machines and seizing linked domains.

International law enforcement, working with CrowdStrike and the Shadowserver Foundation, executed a peer-to-peer sinkhole operation against Sality, a botnet active since 2003 that delivered malware to more than 15,000 machines worldwide. Sality's primary payload for eight years was EggJagger, a clipboard hijacker that swaps copied bitcoin and ethereum wallet addresses with attacker-controlled ones, yielding at least $150,000 in stolen cryptocurrency. The US Justice Department, FBI, and DoD Office of Inspector General's Defense Criminal Investigative Service seized Sality-linked domains, with parallel action in Bulgaria, Hungary, and Romania. The Shadowserver Foundation is coordinating with ISPs and CSIRTs to identify infections and notify victims.

The Register · Security · 15d agoMalware in the wild

US Indicts 17 Iranians Over Years

US unsealed superseding indictment charging 17 Mabna Institute Iranians for IRGC-linked espionage stealing 31TB from universities, companies, and government agencies.

The Justice Department unsealed a superseding indictment charging 17 members of the Iran-based Mabna Institute, which conducted hacking campaigns since at least 2013 on behalf of the IRGC and other Iranian clients. The group compromised 144 US and 178 foreign universities, at least 42 US companies, and multiple government agencies, stealing over 31 terabytes of academic data and IP plus employee email inboxes. Hackers breached roughly 8,000 of 100,000 targeted professor accounts across 24 countries, selling stolen research through Megapaper.ir and Gigapaper.ir. Behzad Mesri, tied to the HBO breach and $6 million Bitcoin extortion, is among eight new defendants, and five defendants carry State Department Rewards for Justice bounties up to $10 million.

Security Affairs · 27d agoThreat actor in the wild