Liquid Network Hacked: $320M in BTC Stolen via LBTC Inflation Bug
A hack on Blockstream's Liquid Network has compromised its federation reserves, resulting in the withdrawal of approximately 4,000 BTC (~$320 million) from the treasury. The attackers exploited an LBTC inflation bug to mint over 4,019.4 LBTC and peg out the equivalent amount of BTC using a SideSwap peg-out key.
The hack occurred on September 6 and has left L-BTC holders unable to redeem their underlying BTC. Bridge nodes have been paused, and exchanges have halted L-BTC deposits and withdrawals in response to the breach.
The hackers, who claim to be white-hats, have not yet returned the stolen funds but have provided a message with a contact method on the OP_RETURN arbitrary data field of a mainnet transaction. The Liquid Network's user base is at risk unless the funds are recovered.