Liquid Network Hacked for $320 Million

The Liquid Network, a platform designed to make Bitcoin more useful for trading and settlement, suffered a major setback when it was hacked for $320 million. The incident is another blow to the reputation of cryptocurrencies as they attempt to gain acceptance from banks and institutional investors.

The hack highlights the risks associated with the layers surrounding a blockchain, including wallets, custody arrangements, and transaction infrastructure that users ultimately rely on.

Liquid was built to facilitate Bitcoin trading and settlement, but the incident raises questions about its security and reliability. The platform's vulnerability has sparked concerns among investors and regulators alike.