$47M Still Missing After Liquid Hack as Blockstream Bargains With 'White Hats'

What happened

Hackers drained about 4,000 BTC from the Liquid sidechain, a separate network for faster Bitcoin transactions. They have returned 3,400 BTC, but roughly 600 BTC, worth about $47 million, is still missing. Some people question whether the hackers are truly "white hats," or ethical security researchers.

Confirmed

Global impact / market context

This hack could make people less trusting of sidechains, which are add-on networks that help Bitcoin move faster. If confidence drops, fewer people may use them, reducing trading activity and potentially lowering demand for Bitcoin, which could hurt its price and the revenue of related services.

Analyst inference

The return of most stolen funds may calm investors, but the missing $47 million and doubts about the hackers' motives could still create uncertainty. This might lead to short-term price swings for Bitcoin as traders react to security news, affecting their willingness to buy or sell.

Analyst inference

What to watch

1. Watch whether the remaining 600 BTC, worth about $47 million, is returned. If it is not, the hack's impact could grow, and trust in Liquid's security may weaken further, possibly reducing user activity. Confirmed
2. Investors should monitor Blockstream's negotiations with the so-called white hats. A successful deal to recover all funds could restore confidence, while a breakdown might lead to more negative sentiment and lower Bitcoin prices. Proposed
3. Watch for any changes in Bitcoin's price or trading volume after this news. A drop could signal that investors are worried about security, while stability might mean the market sees this as an isolated event, not affecting broader demand. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• decrypt.co