$320 Million in BTC Stolen from Liquid Network by White-Hat Hackers
A major security incident has occurred on Liquid Network, a Bitcoin Layer 2 network. Approximately $320 million in BTC was withdrawn from the Liquid Federation wallet by supposed white-hat hackers. The hackers claim to be returning the funds after the issue is fixed.
The withdrawal of around 4,000 BTC was made using the SideSwap PAK (Peg-out Authorization Key). However, Liquid Network stated that the key itself was not compromised and no other keys were affected.
Blockstream attempted to contact the hackers through a signed on-chain message but they preferred communicating publicly. The exchange has temporarily disabled its bridge nodes, pausing new transactions.
Ledger CTO Charles Guillemet expressed skepticism about the white-hat claim, pointing out that legitimate security researchers would not typically drain a bridge and then ask to be contacted on-chain.