$320M Exploit Hits Liquid Network Used by Exchanges

The Liquid Network, which facilitates faster trades on the Bitcoin blockchain, was hit by a $320 million exploit. Hackers claimed to be 'good guys' and removed nearly all of the 4,000 BTC held in its federation wallet.

The network, used by over 80 exchanges and infrastructure firms, halted new transactions and warned that wallets would be impacted while federation members work to restore service.

The theft did not occur due to a password or private key compromise but rather through SideSwap, a normal trading platform. A software bug created some of the BTC involved in a system called Elements, which was exploited by hackers.