Liquid Network Hacked for $320M, White Hat Hackers Promise Return

A significant hack has occurred on Blockstream's Liquid Network, resulting in the loss of around $320 million worth of Bitcoin. Approximately 4,000 BTC, roughly 95% of the wallet's balance, was withdrawn before the sidechain was paused.

The hackers behind the withdrawal have identified themselves as white hats, who claim to intend to return most of the funds once a software flaw is fixed. The network remains frozen while engineers work on patching the vulnerability.

Liquid disabled bridge nodes to prevent further transactions and exchanges halted or prepared to halt L-BTC deposits and withdrawals. The incident highlights the importance of coordination in fixing vulnerabilities, as the white hats have insisted that every node on the network must be updated before funds move again.