Hacker Steals USD 340 Million in Bitcoin Heist and Returns Most Funds; Know What Happened
A hacker stole around USD 340 million in bitcoin from Blockstream’s Liquid Network in one of the year’s largest crypto thefts. The network was temporarily paused after the exploit, with the attacker later returning about 3,400 of nearly 4,000 stolen bitcoins. Around 600 bitcoins, worth roughly USD 47 million, remained with the exploiter.
A major cryptocurrency security breach hit the digital asset sector after a hacker made off with approximately USD 340 million in bitcoin from a prominent settlement network. The incident ranks among the largest digital fund thefts recorded globally this year, prompting an immediate operational freeze while technical teams addressed vulnerabilities.
As per a report by TechCrunch, the security compromise targeted the Liquid Network, a settlement platform established by blockchain firm Blockstream in 2018. The perpetrator exploited an underlying technical flaw to extract thousands of bitcoins from a network wallet before returning the vast majority of the digital assets following security patches. Data Beach 2026: TCS, HCLTech, Hexaware and Others Deny Dark Web Leaks; Experts Still Not Satisfied With Answer.
Liquid Network Exploit and Bitcoin Recovery
Blockstream confirmed the breach via social media channels, announcing that network operations were immediately paused while engineers deployed emergency fixes. Industry observers and former executives noted that the individual responsible operated under white hat hacker conditions, returning roughly 3,400 of the nearly 4,000 stolen bitcoins once the software bug was successfully resolved.
Approximately 600 bitcoins, valued at roughly USD 47 million, remained under the control of the exploiter while discussions and secondary security audits continued. Blockstream emphasized that full network functionality will remain suspended until comprehensive system hardening and additional safety protocols are thoroughly verified. Data Breach 2026: 149 Million Login Credentials for Gmail, Facebook and Binance Exposed Online; Cybersecurity Researcher Unsecured Database.
Security Implications for Cryptocurrency Exchanges
The scale of the attempted theft highlights ongoing vulnerabilities within cross-platform settlement infrastructure used by digital asset exchanges. Although the prompt intervention prevented total capital loss, industry analysts point out that reliance on white hat restitution underscores the persistent risks facing decentralized financial ledgers.
Network administrators continue to cooperate with security specialists to secure remaining balances and implement permanent architectural safeguards before resuming normal transaction processing for participating cryptocurrency platforms.
(The above story first appeared on LatestLY on Sep 08, 2026 08:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
