Tag: Liquid Network

  • Bitcoin Miner Jiang Zhuoer Sells Entire BTC Holdings at $77,226; Blockstream Refuses Ransom Demand

    Bitcoin Miner Jiang Zhuoer Sells Entire BTC Holdings at $77,226; Blockstream Refuses Ransom Demand

    Chinese mining pool operator Jiang Zhuoer has liquidated his entire Bitcoin position at $77,226 per BTC, marking a full exit from the cryptocurrency. The move comes amid rising expectations of a Federal Reserve rate hike after stronger-than-expected U.S. Producer Price Index data. Separately, Blockstream has rejected a ransom demand linked to the unauthorized transfer of approximately 4,000 BTC from the Liquid Network, with about 3,400 BTC already returned and 598.5 BTC still outstanding.

    Jiang Exits Bitcoin

    Jiang, founder of the BTC.TOP mining pool, confirmed he sold 100% of his Bitcoin holdings at $77,226. A day earlier, he noted that stronger U.S. Producer Price Index data increased the probability of a Federal Reserve rate hike to 70%. He also predicted that the next Consumer Price Index (CPI) reading would negatively impact markets. Jiang said he could open a short position if market conditions align with his strategy, though it remains unclear whether he will follow through if inflation data further hardens expectations for Fed policy.

    The sale contrasts with Jiang’s previously bullish comments. He had stated he was 90% certain the bear market had ended and expected Ethereum to outperform Bitcoin. He also planned to use remaining reserve funds to buy ETH, but the supplied information does not confirm whether that purchase was completed.

    Blockstream Rejects Ransom

    Blockstream announced it rejected a ransom demand linked to the Bitcoin that was moved without authorization from the Liquid Network. The company stated that the actors have returned approximately 3,400 BTC, leaving around 598.5 BTC outstanding. Blockstream emphasized it would not pay for the return of the Bitcoin or shift recovery costs to users.

    Earlier communications had described the actors as white hats, but Blockstream later rejected that label after the group withheld funds while demanding payment. Blockstream said it engaged in good faith to recover user funds but argued that paying a ransom would set an unacceptable precedent for open-source Bitcoin infrastructure.

    If the remaining funds are not returned, Blockstream plans to pursue lawful recovery channels, including law enforcement, exchanges, service providers, and forensic specialists. The company also highlighted Bitcoin’s public transaction history, which investigators can use to trace transferred assets and support recovery efforts.

    Liquid Accountability Questioned

    A citizen journalist challenged Blockstream’s framing of the dispute as a defense of Bitcoin principles, arguing that Liquid should remain separate from Bitcoin’s base network. The commentator described Liquid as a federated sidechain with an institutional structure and criticized Elements for accepting unbacked L-BTC while federation reserves released BTC. The writer characterized the incident as a sidechain solvency problem after a patch-and-deploy failure and called for greater accountability over the technical failure, while acknowledging that the return of 3,400 BTC reduced the potential impact on users. The commentator referred to the actors as former white hats who later became criminals, though this label is not a legal determination. Blockstream thanked developers and security teams that helped identify and patch weaknesses across related systems and assisted affected users during the incident.

    Conclusion

    Jiang Zhuoer exited Bitcoin at $77,226 after warning that U.S. inflation data could harden Fed policy expectations. Meanwhile, Blockstream rejected a ransom tied to the Liquid Network theft after recovering about 3,400 BTC, with roughly 598.5 BTC still outstanding as the company considers lawful recovery channels.

  • Bitcoin Sidechains Explained: Mechanics, Benefits, and Security Risks

    Bitcoin Sidechains Explained: Mechanics, Benefits, and Security Risks

    What Is a Bitcoin Sidechain?

    A Bitcoin sidechain is an independent blockchain that connects to the Bitcoin network through a mechanism called a two-way peg. Users lock their BTC on the main Bitcoin blockchain, and in return, they receive an equivalent asset on the sidechain. When they want to move back, the sidechain asset is destroyed or locked, and the original BTC becomes available again. This design allows Bitcoin-linked value to operate under different rules without altering Bitcoin itself.

    Features That Sidechains Enable

    Because sidechains operate independently, developers can introduce functionality that would be difficult to implement directly on Bitcoin. For example, Liquid—a popular sidechain—supports confidential transactions and issued assets. Other sidechains can offer smart contracts, decentralized finance (DeFi) applications, or faster payment settlement. Critically, if an experimental feature fails on a sidechain, Bitcoin’s consensus rules remain unchanged, preserving the main network’s security and stability.

    The Security Trade-Off

    Moving BTC to a sidechain introduces new trust assumptions. Liquid, for instance, relies on a federation of 15 functionaries, with an 11-of-15 quorum responsible for block production and managing the Bitcoin peg. Users therefore depend on federation security rather than Bitcoin’s mining-based security. This distinction became highly visible in September 2026, when approximately 4,000 BTC (worth around USD 320 million) was withdrawn from Liquid’s federation wallet during a security incident. Liquid stated that the cryptographic key involved had not been compromised. Nevertheless, the incident underscores that BTC on a sidechain should not be treated as carrying the same operational risk as BTC held directly on Bitcoin.

    Withdrawal Dependencies

    Withdrawing BTC from a sidechain also depends on the operators. Liquid’s standard peg-in requires 102 Bitcoin confirmations (roughly 17 hours), while peg-outs are managed by federation participants and typically take 11 to 35 minutes. If enough functionaries become unavailable, the sidechain may stop producing blocks until quorum is restored. Users must be aware of these potential delays and dependencies.

    Final Thoughts

    Sidechains allow Bitcoin-linked capital to access functionality unavailable on the base network without changing Bitcoin itself. However, additional functionality comes with additional trust assumptions. Before moving BTC to a sidechain, investors should examine who controls the peg, how assets can be recovered, how consensus works, and what happens if operators fail. Treating sidechain BTC as equivalent to self-custodied Bitcoin is not advisable.

    Also Read: Liquid Network Recovers 3,400 BTC After Major Weekend Exploit

    Frequently Asked Questions

    1. What is a Bitcoin sidechain? A Bitcoin sidechain is a separate blockchain connected to Bitcoin through a two-way peg. Users lock BTC and receive an equivalent sidechain asset that can later be redeemed.
    2. How does Liquid Network work with Bitcoin? Liquid allows BTC to be converted into L-BTC for faster settlement and additional features. Its federation manages the peg and block production using a 15-functionary structure.
    3. Are Bitcoin sidechains as secure as Bitcoin itself? Not necessarily. Sidechains use their own consensus, operators, and peg mechanisms, introducing risks that do not exist when holding BTC directly on Bitcoin.
    4. What risks come with moving BTC to a sidechain? Main risks include federation failure, peg disruption, software bugs, and temporary withdrawal problems. Sidechain assets depend on more than Bitcoin’s mining security alone.
    5. Why do people use Bitcoin sidechains? Sidechains can provide faster settlement, confidential transactions, issued assets, and smart-contract functionality, expanding Bitcoin-linked use cases without changing Bitcoin’s base consensus rules.
  • Liquid Network Recovers 3,400 BTC After Weekend Exploit — 600 BTC Still Unaccounted For

    Liquid Network Recovers 3,400 BTC After Weekend Exploit — 600 BTC Still Unaccounted For

    Liquid Network recovered 3,400 BTC (worth approximately $268 million) on Monday after a weekend exploit drained nearly 4,000 BTC from its reserves. However, about 600 BTC, representing 15% of the stolen amount, remains under the attacker’s control. L-BTC deposits and withdrawals remain suspended as operators work toward a safe restart.

    Elements Bug Allowed Unbacked L-BTC Creation

    Liquid disclosed the attack on September 6, confirming that stolen private keys were not the cause. SideSwap also stated its systems were not breached during the incident. Instead, the vulnerability originated from Elements, the Bitcoin Core fork that powers Liquid. A range-proof verification cache bug apparently allowed the creation of L-BTC without matching Bitcoin backing. The attacker then used those unbacked tokens to obtain real BTC through Liquid’s normal peg-out process. Liquid took its federation wallet and bridge nodes offline after detecting the abnormal withdrawals.

    Hacker Returns Most Funds After Patch

    The self-described white-hat hacker pledged to return most funds after Blockstream fixed the underlying software flaw. In messages to Blockstream, the party requested that patches be deployed across every node before returning Bitcoin. Blockstream later confirmed its bridge nodes had received the patch and could safely accept the funds. Onchain data then showed 3,400 BTC moving back to the Liquid Federation wallet. Approximately 598.5 BTC remains under the actor’s control, with no public agreement explaining whether those coins represent a bounty or a planned further return.

    Ledger Chief Technology Officer Charles Guillemet questioned the white-hat label after the partial repayment, stating that keeping roughly 600 BTC did not fit a genuine bug-bounty arrangement and described it as closer to extortion. The return removed most of the immediate reserve shortfall but did not restore normal Liquid operations. The network still needs to verify backing and complete software deployment before reopening its bridge.

    Liquid Keeps Peg Services Paused

    Liquid has not resumed normal operations while its operators prepare a safe restart. L-BTC deposits and withdrawals remain halted, affecting related services at centralized exchanges. Meanwhile, Bitcoin’s main network continues operating without disruption. The exploit also left other Liquid-issued assets untouched, including USDT, Depix, and real-world assets. Liquid wallets such as Aqua face disruption only across their Liquid functions; users can access unaffected Bitcoin network services while Liquid peg activity remains unavailable.

    Before reopening the bridge, operators need to restore one-to-one backing for legitimate L-BTC, distribute the patched Elements release across the network, and verify safe bridge operation. Liquid has not explained how it will cover any remaining gap in L-BTC backing, nor has it published a timeline for restoring the sidechain and its peg services.

  • Crypto Market Update: Bitcoin ETFs See $987M Inflow, XRP Futures Surge, Liquid Network Loses 4,000 BTC

    Crypto Market Update: Bitcoin ETFs See $987M Inflow, XRP Futures Surge, Liquid Network Loses 4,000 BTC

    Bitcoin ETFs Record $987 Million in Weekly Inflows

    Spot Bitcoin exchange-traded funds (ETFs) witnessed a significant surge in investor interest, recording $987 million in net inflows over the past week, according to data from SoSoValue. Leading the charge was BlackRock’s IBIT, which attracted a substantial $692 million in weekly net inflows. ARK 21Shares’ ARKB followed with $138 million, while Grayscale’s GBTC experienced outflows of approximately $47.99 million.

    The total net asset value of spot Bitcoin ETFs now stands at $101.25 billion, with the ETF net asset ratio reaching 6.33%. Cumulative historical net inflows have hit $55.62 billion, reflecting sustained institutional adoption of Bitcoin as an asset class.

    XRP Futures Hit Six-Month High Amid Institutional Interest

    In the XRP market, futures trading volume surged to a six-month high, according to CryptoQuant. This uptick coincides with aggressive accumulation by whales, while Binance remains the dominant liquidity hub for XRP futures, maintaining a wide lead in trading volume ahead of the upcoming Senate vote on September 15.

    The futures boom aligns with growing institutional participation in the US, where spot XRP ETFs recorded net inflows of $18.96 million. This has pushed the combined assets under management (AUM) of these funds to $1.48 billion, signaling renewed confidence in XRP’s long-term prospects.

    Liquid Network Exploited: 4,000 BTC Drained

    A security breach on the Liquid Network, a Bitcoin sidechain developed by Blockstream, resulted in the loss of approximately 4,000 BTC, valued at around $320 million. Liquid is widely used by exchanges and trading platforms for fast and confidential transfers of Bitcoin.

    Preliminary investigations suggest that the attackers did not steal a private key. Instead, a flaw in the Elements node—the software powering the sidechain—is suspected. Notably, a patch addressing the vulnerability was committed by a Blockstream developer on August 3, 2026, but it was only merged into the release branch after the incident. This raises questions about the project’s update and security protocols.

    Pi Network’s Protocol 27: A Milestone Upgrade

    Pi Network is gearing up for a significant upgrade with Protocol 27, which introduces smart contract authentication, an automated market maker (AMM) DEX, and RPC server infrastructure. This upgrade is crucial for the network, which boasts 14 million migrated users.

    The mainnet activation is scheduled for September 15, marking a pivotal test for Pi Network’s ability to deliver real-world utility after seven years of mobile mining. The Pi Core Team has described Protocol 27 as the “final planned” protocol change in the current development sequence.

    Arthur Hayes Expands UNI Holdings

    Arthur Hayes, co-founder of BitMEX, has increased his Uniswap (UNI) holdings to over $2 million. According to Etherscan, a wallet labeled “Arthur Hayes 4” now holds 284,102 UNI, accumulated through purchases on Sunday and Monday. The wallet also contains approximately 8,013 ETH.

    Hayes reportedly sourced the funds from over-the-counter (OTC) deals with Galaxy Digital, Cumberland, and FalconX, avoiding open market impact. In a post on X, he wrote, “Time to run it back turbo,” and humorously called UNI his “favourite type of sushi.”

    Conclusion

    This week’s crypto market highlights include robust Bitcoin ETF inflows, XRP’s resurgence, a significant security breach on the Liquid Network, and notable whale activity. As the market evolves, these developments underscore the dynamic nature of the cryptocurrency ecosystem and the importance of staying informed.

    Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.

  • Bitcoin Holds Near $78,650 as CLARITY Act Vote and Iran Tensions Keep Markets on Edge

    Bitcoin Holds Near $78,650 as CLARITY Act Vote and Iran Tensions Keep Markets on Edge

    Bitcoin traded near USD 78,648.66 in a tight band on Tuesday, with total market capitalization above USD 1.57 trillion. Oil prices climbed past USD 92 a barrel this week as rising US-Iran tensions kept traders defensive across risk assets. Zcash outperformed the broader market, jumping 5.7% as its ETF-driven rally continued into September.

    Bitcoin Price Today

    Bitcoin traded at USD 78,648.66, up 1.1% in the past 24 hours, according to CoinGecko data. Market capitalization stood at USD 1.57 trillion, with 24-hour trading volume reaching USD 23.35 billion. The coin was flat over the past seven days.

    Key Analyst Views

    CoinSwitch: BTC is trading near USD 78,000–80,000 after shifting rate expectations. Holding above USD 79,500 could open a path toward USD 82,000, with USD 85,000 possible if conditions ease.

    Mudrex: According to Prateek Gupta, Head of Business at Mudrex, Bitcoin is holding near USD 78,600 despite oil above USD 92. Spot demand metrics have turned soft. BTC needs to reclaim USD 80,000 to regain momentum, with USD 77,500 as support.

    Crypto Prices Today: Top Coins at a Glance

    Source: CoinGecko, prices as of today’s session.

    Biggest Gainers and Losers

    Zcash led the top ten with a 5.7% gain. Hyperliquid followed with 2.3%, and Solana rose 1.8%. Stablecoins Tether and USDC stayed flat. No coin in the top ten posted a decline.

    Crypto News Today: Top Headlines Impacting Prices

    CLARITY Act Faces Make-or-Break Senate Vote

    The Senate will hold a cloture vote on the CLARITY Act on September 15. This procedural step needs 60 votes to pass. A failed vote could stall comprehensive US crypto rules for years.

    Middle East Tensions Push Oil Above USD 92

    Escalating US-Iran tensions lifted Brent crude past USD 92 a barrel. Higher energy costs risk keeping inflation elevated as the Fed weighs its next policy decision.

    Liquid Network Faces Scrutiny

    A node-level flaw in Liquid Network’s transaction software led to an unusual transfer of Bitcoin reserves. The incident remains under active industry review.

    Harmony Proposes Migrating ONE to Ethereum

    Harmony has proposed shutting down its independent Layer 1 blockchain to migrate its ONE token onto Ethereum for added liquidity and scale.

    Bitcoin and Ethereum ETFs Extend Inflow Streak

    US spot Bitcoin ETFs pulled in close to USD 987 million in net inflows last week, while spot Ethereum ETFs added roughly USD 218 million. Both products have posted inflows for three consecutive weeks.

    Derivatives Leverage Rebuilds as Traders Reposition

    Perpetual open interest across crypto derivatives has climbed sharply this week. Liquidations over the past day remained elevated, with long positions bearing the brunt.

    Investor and Market Outlook

    Today’s session shows a balance between resilient ETF demand and rising macro pressure. Bitcoin faces resistance between USD 80,000 and USD 82,000 heading into next week. A decisive close above USD 80,000, backed by steady ETF inflows, would strengthen the recovery case. Investors should track US inflation data and the CLARITY Act vote closely. Desks recommend disciplined position sizing rather than chasing strength after sharp moves.

    FAQs

    1. What is the Bitcoin price today? Bitcoin trades near USD 78,648.66, up 1.1% over 24 hours. Resistance sits near USD 80,000–82,000, while support holds close to USD 77,500.

    2. Why did Bitcoin move higher today? Steady ETF inflows and resilient institutional demand offset pressure from a cautious macro backdrop.

    3. What is the biggest crypto news today? The CLARITY Act Senate cloture vote, rising oil prices from US-Iran tensions, a Liquid Network exploit, and continued ETF inflows.

    4. Which coins are performing best today? Zcash (+5.7%), Hyperliquid (+2.3%), and Solana (+1.8%). No top-ten coin declined.

    5. What should investors watch this week? US inflation data, the September 15 CLARITY Act vote, and Bitcoin/Ethereum ETF flow data.

    Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making any investments.

  • Apeing Presale Draws Attention Amid Bitcoin Security Scare and Monero Pullback

    Apeing Presale Draws Attention Amid Bitcoin Security Scare and Monero Pullback

    The cryptocurrency market is experiencing a wave of contrasting movements. Bitcoin is grappling with a major security incident on the Liquid Network, Monero is cooling off after a strong rally, and a new presale project called Apeing is capturing investor interest with its early-stage pricing.

    Apeing Presale: A Low-Cost Entry Point

    Apeing’s presale is already live in Stage 1, known as Banana Drop, offering tokens at $0.0001 with a limited allocation of 150 million $APEING. The project has a fixed total supply of 16.75 billion tokens, with 40% allocated to the presale. The stated listing price is $0.01, meaning early participants could see a theoretical 100x difference if the token reaches that level. The presale follows a staged pricing model, with each subsequent stage increasing the price. This structure creates a clear incentive for early investigation before later stages open at higher costs.

    Bitcoin Faces Security Concerns on Liquid Network

    Nearly 4,000 BTC—worth approximately $320 million—was reportedly drained from Liquid Network, a Bitcoin Layer-2 solution, following an apparent security exploit. The network temporarily paused transactions and disabled bridge nodes while federation members investigated. The attackers posted an on-chain message claiming to be whitehats, but the intentions remain unclear. The incident has raised fresh questions about the security of cross-chain infrastructure and tokenized Bitcoin systems.

    Monero Retreats After Powerful Rally

    Monero’s price dropped roughly 3.6% over a 27-hour period after a strong August rally from around $360 to a high near $557 in early September. The correction appears driven by profit-taking and macroeconomic pressure, including a stronger-than-expected U.S. jobs report that triggered a Bitcoin decline below $79,000 and increased liquidations in leveraged positions. Despite the pullback, Monero’s underlying network fundamentals remain intact.

    Why Apeing Deserves a Look

    While Bitcoin and Monero deal with their respective challenges, Apeing represents a presale-stage opportunity. The project’s fixed supply, Ethereum ERC-20 foundation, and 18-month liquidity lock provide structural elements for potential participants to evaluate. The current Stage 1 price of $0.0001 will not last forever—once the 150 million allocation is filled, the price increases. For investors searching for the next big crypto, this creates a time-sensitive window to research before the entry point disappears.

    Conclusion

    Bitcoin is under scrutiny after the Liquid Network exploit, Monero is correcting after a strong run, and Apeing offers a live presale with a significant theoretical price gap. The Apeing presale is currently at $0.0001 with limited tokens available. Later stages will carry higher prices, making the current phase worth investigating for those looking to get in early.