Crypto
Liquid Network Halted After $320M BTC Heist
The Liquid Network, a Bitcoin sidechain, has paused operations after hackers withdrew approximately $320 million worth of BTC from its federation wallet.
According to the network's statement on X, white-hat hackers, who are cybersecurity professionals, withdrew around 4,000 BTC (95% of Liquid's Bitcoin reserves) using the SideSwap PAK or Peg-Out Authorization Key.
The hackers contacted the Liquid Network in an on-chain message linked to the transaction, stating 'We are whitehats. Contact us on-chain.'
As a result, cryptocurrency exchanges have suspended LBTC deposits and withdrawals, while bridge nodes have been temporarily disabled to prevent new transactions from being submitted to the network.