$320 Million Bitcoin Heist Hits Liquid Network, White-Hat Hackers Promise Return
On September 6, an unknown group of actors withdrew approximately $320 million in Bitcoin from Liquid Network's federation wallet. The team behind the project confirmed that around 4,000 BTC was taken.
The attackers claimed to be 'white-hat hackers' and left a message stating they would return 'most' of the funds once a vulnerability is patched. They have been communicating with Blockstream via OP_RETURN messages and PGP encrypted text.
According to SideSwap, the attackers exploited a bug in Liquid's software that allowed them to create L-BTC tokens without corresponding Bitcoin reserves. This was then exchanged for Bitcoin through SideSwap.
Liquid Network developers have halted new transactions and notified exchanges to suspend L-BTC deposits and withdrawals. The team emphasized that other network assets, such as USDT, DePix, and RWA, were not affected by the breach.