Liquid Network Hacked: Nearly $320 Million in BTC Stolen

The Liquid Network, a major infrastructure built on top of Bitcoin to speed up transfers and tokenise financial assets, has been hacked. Almost 4,000 BTC, worth $320 million, were withdrawn without authorisation over the weekend.

This corresponds to approximately 95% of the bitcoins held by the system, almost the entire reserve. In response, Liquid has suspended the network and exchanges have halted L-BTC deposits and withdrawals.

The incident did not compromise the Bitcoin network itself, but affected Liquid, a separate system built on top of it. The immediate risk concerns holders of L-BTC (Bitcoin derivatives) and the credibility of the project designed to expand Bitcoin's financial applications.