The purported white-hat hackers behind the Liquid Network security incident have offered to return most of the nearly 4,000 BTC they withdrew. The haul is valued at $320 million. The return is conditional on Blockstream fixing the vulnerability that enabled the exploit.
A Return With Strings Attached
The offer covers most of the withdrawn bitcoin, but not all of it. The group, which has not been publicly identified, has made the fix a precondition for handing back the funds. That means Blockstream has to close the security hole before the money moves.
The hackers have not said exactly how much of the 4,000 BTC they would return, only that it would be "most." That leaves a portion of the funds unaccounted for, even if the deal goes through.
The Vulnerability at the Heart of the Deal
The exploit took advantage of a weakness in the Liquid Network's code. The hackers have tied the return of the funds to a patch for that specific flaw. Without a fix, the nearly 4,000 BTC stay where they are.
The details of the vulnerability have not been disclosed. What is clear is that Blockstream must address it before the funds are released.
The Scale of the Withdrawal
The incident involved the withdrawal of nearly 4,000 BTC, valued at $320 million. The offer to return "most" of that sum would still leave a significant amount of bitcoin in the hackers' hands, unless the fix comes quickly.
The return of the funds is not a simple transfer. It is a negotiation, with the vulnerability as the bargaining chip.
What Happens Next
The return of the funds now rests on Blockstream's response. The company must fix the vulnerability for the return to happen. Until then, the nearly 4,000 BTC remain in the hackers' possession.
The next move belongs to Blockstream. If the company patches the flaw, the funds could be on their way back. If not, the bitcoin stays put.
