LIQUID | Crypto

Blockstream is refusing to pay the Liquid attacker nearly 600 Bitcoin (roughly $50 million), escalating a dispute over how the crypto industry should reward partial restitution. The standoff follows an unusual recovery from the Sept. 6 exploit, when a vulnerability allowed the attacker to create about 4,000 unbacked L-BTC and withdraw roughly 3,996 real BTC through […] The post Blockstream bets 600 Bitcoin by rejecting Liquid hacker’s $50 million bounty demand appeared first on CryptoSlate.

Blockstream said it would work with law enforcement, exchanges and forensic specialists to recover the Bitcoin if the hackers do not return it. Bitcoin infrastructure company Blockstream said it will not pay a ransom to recover funds still held by the Liquid Network hackers. “Taking assets without authorization and withholding their return is a crime, not responsible disclosure,” Blockstream said Friday. “It is not white-hat activity. It is theft.” The company said it had engaged with the hackers in good faith to recover user funds but would not accept their demands. Read more

The Sept. 7 return replenished the federation wallet, but Blockstream still listed a public bridge outage the following morning. The post Liquid recovers 3,400 BTC as hacker asks “is that ok?” after pocketing $47 million in Bitcoin appeared first on CryptoSlate.

The actors returned 85% of the Bitcoin withdrawn from Liquid’s federation wallet following the security incident. Purported white-hat hackers returned 3,400 Bitcoin worth about $270 million to the Liquid Federation wallet after withdrawing roughly $320 million from the Bitcoin sidechain’s reserves.  On Monday, JAN3 CEO and former Blockstream executive Samson Mow said the return followed confirmation from Blockstream that the affected bridge nodes had been patched. He said about 598 BTC remains outstanding and that Blockstream continues to engage with the actors. The return follows a Sunday security incident in which hackers withdrew about 4,000 BTC from the wallet’s roughly 4,200 BTC. Onchain records show that exactly 3,400 BTC was transferred back to the federation’s wallet address.  Read more

Researchers examining the roughly $320 million Liquid Network incident have identified an alleged failure in the software’s transaction-validation cache, offering a more specific explanation for how unbacked tokens could be redeemed for real Bitcoin. Accounts also raise a deployment question. Mononaut said the exploited bug had entered Elements’ master development branch the previous week but […] The post Tokens created out of thin air may explain how $320 million in Bitcoin left the Liquid sidechain appeared first on CryptoSlate.

The actors told Blockstream they would return most of the 4,000 BTC after the Elements vulnerability is patched across the network. Bitcoin sidechain Liquid paused operations after actors claiming to be white-hat hackers withdrew about 4,000 Bitcoin worth $320 million from its federation wallet.  On Sunday, Liquid said that bridge nodes were disabled, preventing new transactions, while exchanges had halted or were preparing to halt L-BTC deposits and withdrawals. Blockstream, Liquid’s technology provider, started contacting the actors through signed onchain messages. Subsequent messages show the actors told Blockstream to patch the vulnerability and ensure every node was updated before they would return most of the Bitcoin.  Read more

Purported white hat hackers have taken 4000 Bitcoin from the Liquid sidechain in a major security breach. The Bitcoin ETFs see the best three weeks of inflows in 2026. A shade under 4000 Bitcoin worth $319 million has been taken from Liquid Network — with purported “white hat” hackers claiming responsibility. An unverified OP_RETURN message read: “we are whitehats. contact us on chain.”   The Blockstream-run Bitcoin sidechain has paused bridge nodes and told exchanges to pause LBTC deposits and withdrawls as the team attempts to contact the attackers and identify the security holes. The Liquid explorer shows the balance of its federation wallet dropped from 4,200 BTC down to just 207.275 BTC. Under normal Liquid mechanics, LBTC is burned on the sidechain before Bitcoin is withdrawn. In simple terms, the transaction needs to be authorized by an 11 of 15 multisig with funds sent to an approved whitelist.     Read more

Co-Invest lets users fund accounts, analyze positions and execute trades across more than 500 markets without leaving AI chat interfaces. Liquid, a multi-asset trading platform, has launched a trading app that lets users execute trades directly inside OpenAI ChatGPT and Anthropic Claude across crypto, equities, foreign exchange markets and prediction markets. According to the company, the Co-Invest app's users can fund accounts, analyze positions and place trades without leaving the chat interface. Liquid said the platform routes orders through venues including Hyperliquid, Lighter and Ostium. Liquid said Co-Invest supports trading across more than 500 markets, including pre-IPO secondaries and positions on Polymarket. The company said that its platform has processed more than $3 billion in trading volume since launching in August 2025 and currently serves roughly 40,000 users. Read more

The platform targets retail traders with always on access across more than 500 crypto and traditional markets, including equity-linked derivatives, from a single interface. Liquid has raised $18 million in a seed funding round to expand a platform that lets users trade crypto and traditional assets around the clock from a single interface. The platform offers access to more than 500 markets across crypto, equities, commodities and foreign exchange, with leverage of up to 200x and tools that allow trading without transferring custody of assets, according to Tuesday's announcement. The round was co-led by Neo and Left Lane Capital, with participation from Haun Ventures, K5 Global, SV Angel, AntiFund and Sunflower Capital, alongside existing investors Paradigm and General Catalyst. Read more

The following is a guest post and guest post from Thomas Pratter, Founder and CEO at Renesis. Liquid crypto funds are having a moment. The number of actively managed vehicles keeps growing, DeFi strategies are gaining legitimacy, and regulatory clarity is slowly catching up. Institutional allocators are paying closer attention than ever. But behind the […] The post Liquid crypto funds have a DeFi problem nobody talks about appeared first on CryptoSlate.

Bitcoin, Ethereum, and Solana are three of the largest ecosystems in digital assets. Bitcoin anchors the market with deep liquidity and security. Ethereum supports most decentralized applications and DeFi protocols. Solana offers high-speed execution and low transaction costs for active trading environments.Individually, each network dominates its niche. Collectively, however, they operate in parallel. Liquidity remains […] The post Can BTC, ETH, and SOL Liquidity Work Together? LiquidChain (LIQUID) Crypto Presale Focuses on Staking and Settlement appeared first on Cryptonews.