Liquid Network Hacked: 4,000 BTC Stolen in Massive Heist

A large-scale hack occurred on the Liquid Network, resulting in the theft of nearly 4,000 BTC, valued at approximately $320 million. The hackers claim to be 'white hats' but have yet to return the funds.

The attack involved two transactions that transferred a total of 3,998.5 BTC from the network's federated wallet. This left the wallet with only about 207 BTC, a loss of nearly 95% of its initial balance.

The hackers used SideSwap's Peg-out Authorization Key (PAK) to initiate the withdrawals, but Liquid Network asserts that this key was not compromised. The exact method used in the hack remains unknown.

Liquid temporarily disabled its bridge nodes and instructed exchange platforms to suspend deposits and withdrawals of L-BTC. The network emphasizes that other assets issued by Liquid, such as stablecoins and tokenized assets, are not directly affected.