TREE NEWS update: Attackers behind the Liquid Network breach have returned 3,400 BTC to the federation wallet, but nearly 600 BTC worth about $47 million remain unreturned. The sidechain remains frozen as Blockstream prepares a restart. Most of the stolen bitcoin is back, yet the shortfall persists.
Liquid attackers return 3,400 BTC, keep 600 as Blockstream prepares restart
The partial return shifts the breach's impact from total loss to a manageable shortfall, yet the retained 600 BTC signals that recovery negotiations or incentive structures are incomplete. The frozen state of the sidechain means operational trust, not just funds, is at stake—users and partners will weigh whether the restart restores confidence or exposes governance gaps. What matters next is how Blockstream addresses the unreturned balance and whether the restart process demonstrates sufficient security upgrades to prevent recurrence; the open question is whether the federation's response will be seen as decisive or reactive.
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