Liquid Network Halted After 4,000 BTC Withdrawn in Mysterious Incident
A significant security incident has occurred on the Liquid Network, a Bitcoin Layer 2 network. Approximately 4,000 BTC worth around $320 million have been withdrawn from the Liquid Federation wallet. The funds were removed through the SideSwap PAK, but it is unclear what triggered this action.
The team behind Blockstream, the technical provider for the Liquid Network, has attempted to contact the party responsible for the withdrawal with a signed on-chain message. However, no response or information about the identity of the person or entity involved has been received.
Liquid Network has notified several cryptocurrency exchanges about the incident and has taken steps to temporarily suspend the network's functionality until the issue is resolved.