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Author Topic: 4,000 BTC just moved. OP_RETURN: "We are whitehats..."  (Read 376 times)
greysonz (OP)
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Today at 03:41:17 PM
 #21

So, it turns out that the hackers who obtained the bitcoins are the very same people promising to return them. It seems they simply wanted to set an example - a demonstration of the bug, essentially.
sergiorus
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Today at 04:27:14 PM
 #22

3,400 BTC just returned to the liquid federation. Looks like ~600 BTC stayed behind.

Source: https://x.com/rob1ham/status/2096988476327534923


That's a really fat bounty. Probably the largest ever so far?


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FinneysTrueVision
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Today at 04:28:23 PM
Merited by ryzaadit (1), greysonz (1)
 #23

In the end, the hacker ended up returning 3,400 BTC, keeping 15% as a bounty payment I assume. This means that L-BTC is still undercollateralized by hundreds of Bitcoin. Back when the KelpDAO, exploit happened some months ago there was several companies and DeFi projects that stepped up to donate ETH and make up the deficit. I’m not sure if something like that will happen here or if L-BTC will be redeemable for less than 1:1 BTC.

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dkbit98
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Today at 07:50:53 PM
 #24

What a shit show Tongue
Luckily for Liquid company this guy who exploited them was not a piece of shit, so he returned most of the coins.
I had a feeling something like this could happen and I talked about few weeks ago.
Now I am predicting something new, don't hold anything in lightning network because similar exploit could happen for LN.

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DaveF
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Today at 08:06:19 PM
 #25

...
Now I am predicting something new, don't hold anything in lightning network because similar exploit could happen for LN.

https://bitcointalk.org/index.php?topic=5592448

Yeah, I know it's not LN itself just a small application for dealing with it. LND still has most of the network.

We are going to see this more and more. Then, IMO it's going to stop. All the low hanging bugs are going to taken care of, the medium ones will be found and the rest are going to sit there hidden for a long time because the time & effort & cost to find them is just going to be too high even with AI slamming into it trying to find vulnerabilities.

-Dave

 
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collardelay
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Today at 08:17:52 PM
 #26

3,400 BTC just returned to the liquid federation. Looks like ~600 BTC stayed behind.

Source: https://x.com/rob1ham/status/2096988476327534923


That's a really fat bounty. Probably the largest ever so far?

Woah that's huge. Looks like Liquid Network didn't have much choice in the matter.

They obviously got bullied into making concessions thus making the deal 'above board'.

598 BTC makes this a very expensive bug fix.... Grin
sergiorus
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Today at 09:29:18 PM
 #27

3,400 BTC just returned to the liquid federation. Looks like ~600 BTC stayed behind.

Source: https://x.com/rob1ham/status/2096988476327534923


That's a really fat bounty. Probably the largest ever so far?

 Looks like Liquid Network didn't have much choice in the matter.
 

They absolutely didn't have a choice. Going the law enforcement way wouldn't guarantee to be any fruitful, whilst prolonged loss of funds would almost certainly destroy the federation.

They screwed up big time and "anything above zero" was a good scenario for them. Of course the hacker is surely one insolent kiddo, but their asses are saved and they still got very lucky.


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PrivacyG
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Today at 09:37:23 PM
 #28

It was obvious that this wasn’t white hackers, even though some guys here were hoping the situation wasn’t negative. I believe that white hackers would never sign a transaction in op_return, since such a large transaction would be noticed by on‑chain analysts anyway. And white hackers always end up sharing information about their victories over hackers on social media. In our case, this signature was a naive attempt to dispel suspicion.
I am curious why you consider it was obvious they have malicious intents.

Do you consider it a positive out come now that a significant part of it was sent back?  I would personally say this is one of the best out comes possible.  600 Bitcoin is still a GIGANTIC loss, but getting a quarter Billion Dollars and leaving around 45 to 50 Million to the hacker is still some thing.

It was simply about time until some body else would have found the same vulnerabilities and did a Coldcard type of attack where every Satoshi is irreversibly pulled in to their own pockets.  A very big pay out, a pretty asshole kind of pay out even but it could have been a lot worse.

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