Liquid Network says it is entering final recovery stage after 4,000 BTC hack
The Liquid Network said in a blog post that it is entering the final stages of recovery after hackers took 4,000 bitcoins, worth about $320 million at the time, from its federation wallet, Bitcoin Magazine reported. Blockstream CEO Adam Back said on X that swaps were working again, and the hackers are said to still hold around 600 bitcoins, about 15% of the funds.
Only one publisher so far. Another independent outlet or an official source would raise it.
Security topic · core coin BTC
No time pressure
Three separate rule-based signals. None is the probability that the report is true. How they work →
Key facts
Attributed sources: Bitcoin Magazine
BTC after this site detected it
- 5 minutes-0.00%Gate · USDT
- 1 hour-0.28%Gate · USDT
- 24 hours+1.41%Gate · USDT
Claims and open questions
What sources claim
- The Liquid Network said it is entering the final stages of recovery with enhanced security, including reestablishing full 1:1 bitcoin backing and controlled reactivation of federation peg-outs for authorized PAK key holders, Bitcoin Magazine reported.
- Hackers stole 4,000 bitcoins from the federation wallet in September by exploiting an inflation bug to create more than 4,000 LBTC, with most of the funds later returned in a white hat operation, according to Bitcoin Magazine.
- Around 600 bitcoins, or 15% of the total funds, are still held by the hackers as per the latest public knowledge, Bitcoin Magazine reported.
Still unresolved
- Whether Blockstream reached a private settlement with the hackers over the roughly 600 bitcoins still held is not clear, per the report.
- What the enhanced security measures consist of, and when full 1:1 bitcoin backing will be restored, would need confirmation from Liquid or Blockstream.
Model-assisted explanation; citations, numbers and output format are checked. This is not independent semantic verification.
Source evidence
bitcoinmagazine.com
Published 20/10/2026, 21:10 · Received 21/10/2026, 00:38
Original source titles remain in their source language. Full articles are not republished.
Market reaction after detection
Returns start at the sample closest to site detection (within the same minute up to 10 minutes later), using the same data source and quote currency. Actual sample times are shown; missing observations remain blank.
| Window | Return | Actual sampled interval / source |
|---|---|---|
| 5 minutes | -0.00% | 21/10/2026, 00:38 → 21/10/2026, 00:43 (UTC) Gate · USDT |
| 1 hour | -0.28% | 21/10/2026, 00:38 → 21/10/2026, 01:38 (UTC) Gate · USDT |
| 24 hours | +1.41% | 21/10/2026, 00:38 → 22/10/2026, 00:38 (UTC) Gate · USDT |
Historical market context
Research: hourly returns and BTC beta →
Closed hourly candles from the 30 days before this event observation. Different venues are kept separate.
| Metric | Value |
|---|---|
| Hourly coverage | 100.0% (720/720) |
| Median absolute 1h return | 0.15% |
| 99th percentile of absolute 1h returns | 1.23% |
OKX · USDT · Context as of 21/10/2026, 00:38 · Last included candle closed 21/10/2026, 00:00
Hourly descriptive statistics, not minute-move probabilities. Backfilled history never moves the observation cutoff above.
Event timeline
Source publication, receipt and analysis times are separate. All times UTC.
Source published: Bitcoin Magazine
Source received: Bitcoin Magazine
Event first detected by this site
Evidence record updated
English explanation generated
Latest content update
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