Blockstream's Liquid Peg Hit by $319 Million BTC Drain

Nearly 4,000 BTC worth approximately $319 million was transferred out of Blockstream's Liquid Peg on September 6, leaving a significant shortfall in the network's reserve. The transfer was notable because it bypassed normal security mechanisms designed to prevent such large withdrawals.

The incident began with an on-chain message claiming 'we are whitehats. contact us on chain' from an unidentified party, adding to the mystery surrounding the event.

The transfer reduced Liquid's reserve from approximately 4,200 BTC to just 207 BTC, sparking questions about how this was possible and whether any vulnerabilities were exploited.