A hacker stole $340M in a crypto heist, then returned most of it

A hacker stole thousands of bitcoins worth about $340 million in a heist at a settlement exchange used by several cryptocurrency exchanges, representing one of the largest known thefts of crypto this year.

Liquid Network, which launched in 2018 by crypto firm Blockstream, said in a post on X on Sunday that a “white hat” hacker stole the funds from the network’s wallet, and that it has paused operations until the incident is resolved.

It’s not yet known who the hacker is, but crypto media reports that the hacker allegedly exploited a bug to withdraw the funds. The hacker said they would return the funds if Blockstream fixed the bug.

Former Blockstream executive Samson Mow said in a post on X on Monday that the company had fixed the bug, and around 3,400 of the roughly 4,000 stolen bitcoins had been returned. The remaining about 600 bitcoins (about $47 million) were still under the hacker’s control.

Mow said operations will remain paused until additional fixes and security improvements are made prior to restarting.

The theft ranks as one of the largest heists of digital funds to date, according to the Rekt leaderboard, which tracks cryptocurrency thefts.