$320M Hacked from Liquid Network's Federation Wallet

Liquid Network, a Bitcoin-based payments and settlement network, announced on Sunday that approximately $320 million was withdrawn from its federation wallet due to a hack.

The hack occurred when 'purported white-hat hackers' withdrew about 4,000 of the 4,200 Bitcoins held in the Liquid Federation wallet via SideSwap, a settlement platform permitted to handle withdrawals from the network. Although the key used in the process was not compromised, the funds were still withdrawn.

Liquid Network stated that liquid wallets will be impacted and apologized for any inconvenience caused by the hack. The company has halted new transactions in response to the incident.