By Isaac • September 8, 2026 11:46 am •
Liquid has recovered most of the bitcoin removed in a security incident that briefly put roughly $320 million at risk, but the episode is not something the network can simply file away as a happy ending.
The incident began when a purported white-hat actor withdrew about 4,000 BTC from a Liquid Federation wallet. According to CryptoSlate, 3,400 BTC was later returned.
The person behind the transaction kept 600 BTC, worth about $47 million at the price used in the report.
Getting 85% of the bitcoin back is a major recovery. It does not erase the fact that one transaction moved an enormous amount of value through a system designed around distributed custody and controlled peg-outs.
The
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