Liquid Network Hacked for $320M in BTC by Self-Proclaimed White-Hat Hackers

Hackers have drained nearly $320 million in Bitcoin from the Liquid Network's federation wallet.

The thieves claimed to be 'white-hat hackers' who will return most of the stolen funds once a vulnerability is fixed and Liquid's nodes are updated.

Liquid, a sidechain developed by Blockstream for exchanges and financial institutions, said around 4,000 BTC were withdrawn from its federation wallet through SideSwap using its Peg-out Authorization Key (PAK).

The hackers' message embedded in the Bitcoin transaction asked Blockstream to contact them, which they did via encrypted channels.