--- title: "Liquid Network says it is entering final recovery stage after 4,000 BTC hack" description: "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…" language: en canonical: "https://whycoinmoves.com/en/events/bitcoin-liquid-network-announces-final-stages-04916836064293" published: 2026-10-21T00:38:03.000Z updated: 2026-10-22T00:41:00.000Z indexable: false --- # 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… Attributed sources: [Bitcoin Magazine]() ## Key facts 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. Evidence strength: Single source, 1 publisher group(s) (Bitcoin Magazine); this describes source coverage, not truth or causation. After site detection, observed returns were 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). Unlisted windows are unavailable. In the preceding 30 days, the 99th percentile of absolute hourly returns was 1.23% (OKX · USDT; cutoff 21/10/2026, 00:38, UTC). This hourly baseline is not directly comparable with a minute move. ## Returns after site detection | Window | Return | BTC | Difference from BTC | Actual sampled interval (UTC) | Source | | --- | --- | --- | --- | --- | --- | | 5 minutes | -0.00% | -0.00% | 0.00 pp | 21/10/2026, 00:38 → 21/10/2026, 00:43 | Gate · USDT | | 1 hour | -0.28% | -0.28% | 0.00 pp | 21/10/2026, 00:38 → 21/10/2026, 01:38 | Gate · USDT | | 24 hours | +1.41% | +1.41% | 0.00 pp | 21/10/2026, 00:38 → 22/10/2026, 00:38 | Gate · USDT | ## Historical hourly baseline | Metric | Value | | --- | --- | | Ready | true | | Coverage | 100.0% (720/720) | | Median absolute hourly return | 0.15% | | 99th percentile of absolute hourly returns | 1.23% | | BTC beta | 1.00 | | Source / cutoff (UTC) | OKX · USDT / 21/10/2026, 00:38 | ## Claims and open questions - 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. - 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. ## Source evidence - [Liquid Network Announces Final Stages of Recovery Following Massive Hack]() — Bitcoin Magazine; published 20/10/2026, 21:10; received 21/10/2026, 00:38 (UTC). ## Recent BTC events and market reactions - [Chinese court accepts prosecutors' bid to confiscate Bitcoin seized in UK]() — Published 22/10/2026, 06:24 (UTC) · Multiple publishers (3 publishers) · General news · 5m -0.02% / 1h -0.41% / 24h -0.94% - [US spot Bitcoin ETFs take in about $1.07 billion over three sessions]() — Published 22/10/2026, 04:41 (UTC) · Multiple publishers (3 publishers) · Market watch · 5m +0.05% / 1h +0.07% / 24h -1.31% - [Bitcoin slips below $82K after Tesla and Meta results unsettle tech markets]() — Published 22/10/2026, 03:51 (UTC) · Multiple publishers (2 publishers) · Market watch · 5m +0.13% / 1h +0.04% / 24h -1.04% - [Bitcoin rises above $84,500 as SpaceX earnings lift tech stocks]() — Published 21/10/2026, 15:13 (UTC) · Multiple publishers (2 publishers) · Market watch · 5m +0.15% / 1h +0.25% - [SpaceX and Tesla boards weigh merger that would combine 30,221 bitcoin]() — Published 21/10/2026, 09:23 (UTC) · Multiple publishers (2 publishers) · General news · 5m +0.08% / 1h -0.21% / 24h -2.08% - [Full coin archive]() ## Research for this archive - [Crypto hacks and price impact: Bybit and Cetus case studies]() - [Altcoin beta to Bitcoin: BTC, ETH, SOL and DOGE hourly returns]() - [Perpetual funding rates and annualized yield: a 2025 comparison]() - [Bitcoin halving and bull markets: evidence from four halvings]() [Methods and limitations]() Publisher count is not independent evidence count. Price changes cannot verify news or prove causation.