$320M Bitcoin Heist Rocks Liquid Network Amid White-Hat Hacker Communication
A significant security incident has struck the Liquid Network, resulting in the unauthorized withdrawal of approximately $320 million worth of Bitcoin. The attacker, who claimed to be a white-hat hacker, made off with 4,000 BTC from Liquid's Federation wallet via the SideSwap PAK.
Liquid quickly responded by disabling bridge nodes and pausing the sidechain, effectively freezing the network until the issue is resolved. Exchanges were also notified to halt LBTC deposits and withdrawals as a precautionary measure.
The hacker's on-chain message stated that they are willing to return most of the funds once the vulnerability has been patched, warning that every node needs to be updated before the funds would be safely returned. Blockstream confirmed receipt of the message and the PGP signature matched the key published on their official website.