Blockstream's Liquid Network Hit by $320 Million Exploit

On September 6, Blockstream's Liquid network was exploited, resulting in the withdrawal of approximately 4,000 BTC (valued at around $320 million) by what is believed to be white hat hackers.

The discovery was made by Ergo BTC, an on-chain sleuth, who alerted others to the news. Bitcoin.com News reported on the story at 3:17 p.m. EDT, and Blockstream soon confirmed the exploit.

According to Ledger CTO Charles Guillemet, the move does not look like typical white hat behavior, as the hackers are now attempting to contact their victims via Signal.

The Liquid Network has been paused, with exchanges instructed to halt L-BTC deposits and withdrawals. The incident has raised concerns about sidechain security and governance fragility in the crypto space.