Blockstream's Liquid Network Suffers $320 Million Hack
Blockstream's Liquid Network has suffered a major security breach, resulting in nearly 4,000 BTC being transferred from its Bitcoin wallet without authorization. The funds, worth approximately $320 million, were moved through a process called peg-out, which allows Bitcoin to move from the Liquid sidechain back to the primary Bitcoin network.
The incident occurred on September 6, with the transfer being executed via transaction c103de95817b43f2df635ec6f35ff126ca26a7c6d20570c4b01866b2b3e69a19. The party responsible for the withdrawal left a message on-chain using the OP_RETURN function, stating 'we are whitehats. contact us on chain.'
Blockstream is attempting to establish contact with the individuals behind the breach via a signed on-chain response. However, no evidence has been provided to support their claim of being 'white-hat hackers,' and it remains unclear whether they will return the stolen funds.