Liquid Network Hacked: Hackers Steal $320 Million in Bitcoin

A massive hacking incident has hit Liquid Network, a high-speed blockchain network used by multiple cryptocurrency trading platforms. The attack resulted in the theft of approximately $320 million from the Bitcoin (BTC) held in its primary Federation storage wallet.

Liquid Network confirmed on X that about 4,000 out of the 4,200 BTC stored in the wallet were removed without authorization. The company quickly halted all incoming and outgoing settlement activity to prevent further exposure.

The funds were withdrawn via the SideSwap PAK (Peg-out Authorization Key), but according to Liquid Network, that key was not compromised. Exchanges have been notified and have paused LBTC deposits and withdrawals in response to the security breach.