Crypto
Bitcoin Sinks Below KES 10.3 Million Amid Liquid Network Hack and Liquidity Shifts
A massive KES 41.6 billion exploit on the Liquid Network sidechain sent shockwaves through the Bitcoin market, causing it to plummet below KES 10.35 million.
The incident occurred early Monday, September 7, 2026, and involved an unauthorized transfer of funds from the sidechain's Peg-out Authorization Key mechanism. The attacker claimed to be a 'white hat' hacker but has not returned the stolen assets.
The breach targeted the Liquid Network, a prominent Bitcoin sidechain operated by Blockstream, designed for fast and confidential settlements between exchanges and institutions. The failure of its 11-of-15 multi-signature threshold security model triggered a risk-off sentiment across spot markets.