$320 Million in BTC Withdrawn from Liquid Network Due to Software Bug

The Liquid Network, a Bitcoin sidechain, has temporarily halted operations after approximately $320 million in BTC was withdrawn from its Federation wallet. According to Liquid, around 4,000 BTC was removed due to an Elements software bug, not a compromised SideSwap key.

The actors behind the withdrawal claim they are white-hat hackers and have stated their intention to return most of the Bitcoin once the vulnerability is patched across Liquid nodes.

Liquid has confirmed that other assets on the network were not impacted by the incident, including USDT, DePix, and real-world assets. However, L-BTC, a Bitcoin-based asset to Liquid, was affected.