Liquid Recovers 3,400 BTC After On-Chain Negotiations; White Hat Hackers Retain 598.5 BTC
4h ago · 1 source · Summarised by CryptoBipto — how we make this
Crypto exchange Liquid has recovered approximately 3,400 BTC following on-chain negotiations with the individuals who exploited the platform. The white hat hackers were allowed to keep 598.5 BTC, reportedly as a bounty for identifying the vulnerability.
WHY IT MATTERS
When a crypto exchange gets hacked, users' funds are at risk — similar to a bank robbery, except that blockchain transactions are generally irreversible. In this case, Liquid managed to get most of the stolen Bitcoin back by communicating directly with the hackers through messages embedded in blockchain transactions, which is like leaving public notes that everyone can see. The hackers kept a portion of the funds as a 'bug bounty,' which is a reward that companies sometimes offer to people who find and report security flaws. This approach — negotiating with hackers rather than only relying on law enforcement — has become a notable trend in crypto because recovering stolen digital assets through traditional legal channels can be extremely difficult.
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