Blockstream Still Missing 600 BTC After Liquid Hack

Blockstream is still trying to recover roughly 600 bitcoin after a hack against the Liquid sidechain that drained about 4,000 BTC, according to the latest account of the incident. The attackers have returned 3,400 BTC, but the remaining balance leaves a substantial loss unresolved.

The episode has become more than a simple theft report. Some market participants and security observers are questioning the hackers’ claim that they were acting as “white hats,” a label typically used for ethical researchers who expose vulnerabilities without intending to keep funds. The partial return of assets has not eliminated skepticism about the motive or the handling of the incident.

Liquid, a Bitcoin sidechain developed by Blockstream, is used for faster settlement and asset issuance among participating institutions and traders. Any breach involving a network of that type raises broader concerns about custody controls, multisignature safeguards and the operational security of sidechain infrastructure.

The remaining 600 BTC, worth about $47 million at current prices, keeps the incident financially material even after the bulk of the funds were returned. For Blockstream and Liquid users, the immediate issue is not only recovery but also whether the event exposes a deeper weakness in the system’s trust assumptions.

The case also lands at a time of elevated risk appetite across digital assets, with the broader market still trading under a greed-heavy sentiment backdrop. That can mute immediate fear in spot prices, but security incidents of this scale tend to sharpen scrutiny of protocol design and counterparty risk.