Blockstream's Liquid Network Hacked for $320 Million
A significant hack has occurred on Blockstream's Liquid Network, resulting in the loss of approximately 4,000 BTC, worth around $320 million.
The attack exploited a vulnerability that allowed an attacker to redeem Bitcoin using non-existent Liquid Bitcoin (LBTC) tokens. Eleven out of fifteen keys signed the transaction, despite the fact that these tokens should not have existed.
The attacker's address published a message claiming they were 'whitehats' and provided a contact method on-chain. SideSwap, which processed the order, blamed the incident on faulty LBTC originating from a third-party 'Elements bug,' denying any responsibility for their system.
Liquid Network confirmed the incident and temporarily paused its sidechain, disabling bridge nodes and suspending LBTC deposits and withdrawals on exchanges.