News
Public · Published
L-BTC Peg-Out Still Shut Down as Blockstream Refuses Hacker Demand
For 11 days, L-BTC to BTC peg-outs on the Liquid Network have been shut down after hackers, called white hat, stole nearly 4,000 BTC. They returned 3,400 BTC, but still hold 598 BTC, and Blockstream refuses their demand.
Published:
Updated:
What happened
For 11 days, L-BTC to BTC peg-outs on the Liquid Network have been shut down after hackers, called white hat, stole nearly 4,000 BTC. They returned 3,400 BTC, but still hold 598 BTC, and Blockstream refuses their demand.
Confirmed
Global impact / market context
Peg-outs are how users turn Liquid's L-BTC back into regular Bitcoin, so shutting them down freezes some funds for traders and businesses. This reduces cash available and trust in the network, which may hurt its use for trading and payments.
Analyst inference
This event could weaken investor confidence in Bitcoin sidechains and similar networks, possibly lowering demand for related assets. It may also draw regulatory attention to security practices, raising costs for companies that rely on such networks, affecting their revenue and profits.
Analyst inference
What to watch
- Monitor whether peg-outs resume on Liquid. The article says they are still shut down after 11 days, with no restart date given. Confirmed
- Watch for any further return of the remaining 598 BTC by the hackers. The article confirms 3,400 BTC returned, but they still hold the rest. Proposed
- Look for updates on Blockstream's response to the hacker demand. If they refuse publicly, it may affect user trust and adoption. Analyst inference
Affected assets
- BTC — Bitcoin