Liquid Network recovers ~3,400 of ~4,000 BTC exploited

The recovery of the majority of exploited funds suggests the attack may have been a white-hat operation rather than a criminal heist, which shifts the market narrative from loss to remediation. The unresolved ~600 BTC and the pending vulnerability fix are the critical variables; if the return completes, confidence in the network's custodial and technical safeguards could stabilize, but any delay or further exposure could amplify scrutiny on sidechain security. The open question is whether Blockstream's patch will fully restore trust among institutional users who rely on the Liquid Network for settlement.