Liquid Network Halts Operations Amid $320M Bitcoin Withdrawal
The Liquid Network has paused operations after a massive withdrawal of $320 million in Bitcoin from its multisig reserve addresses.
The party behind the transaction claims it was a white-hat rescue aimed at preventing a suspected security flaw, but operators have halted transaction processing to investigate further.
This incident does not affect Bitcoin's mainnet, which continues to operate normally with blocks being produced as usual. The issue is specific to Liquid, Blockstream's Bitcoin sidechain, where users rely on its faster settlement and confidential transactions features.
While the white-hat claim may prove accurate, it requires further verification, and operators should not be treated as having settled fact without official confirmation.