Liquid Network Hacked: $320 Million Worth of Bitcoin Withdrawn

Liquid Network, a Bitcoin-based payments and settlement network, has been hit by a significant hack. On Sunday, around $320 million was withdrawn from its federation wallet in an incident that has left users impacted.

The hackers, who Liquid Network refers to as 'purported white-hat hackers', managed to withdraw approximately 4,000 out of the 4,200 Bitcoin held in the Liquid Federation wallet. The funds were withdrawn via SideSwap, a settlement platform permitted to handle withdrawals from the network, although the key used in the process was not compromised.

Liquid Network has halted new transactions and is working to mitigate the impact on its users. In a statement posted on X, the company apologized for any inconvenience caused and assured that it is taking steps to resolve the issue.