Liquid Network Hacked: $405 Million Stolen Amid Crypto Security Concerns
A major hack has shaken confidence in digital-asset security after $405 million was stolen from Liquid Network, which develops a blockchain for faster transactions. The perpetrators are 'purported white-hat hackers' who move funds after finding vulnerabilities with the intention of returning them, often for a fee.
Roughly 4,000 out of 4,200 Bitcoin held in Liquid Federation's wallet were stolen via SideSwap, a settlement platform authorized to handle transfers from the network. The key was not compromised, according to Liquid Network.
Liquid Network is used by exchanges for quick settlement because the main Bitcoin blockchain can often suffer from slow and expensive transactions due to network congestion. Blockstream lists several major exchanges as users of Liquid, including BTSE and Bitfinex.