Liquid Network Heist: Hackers Make Off with 4,000 BTC Worth $319 Million

A major heist has taken place on the Liquid Network, with hackers making off with around 4,000 BTC worth approximately $319 million.

The attackers claim to be 'white hats,' and an unverified OP_RETURN message left behind read: 'we are whitehats. contact us on chain.'

The Blockstream-run Bitcoin sidechain has paused bridge nodes and asked exchanges to halt LBTC deposits and withdrawals while the team tries to establish communication with the hackers and identify vulnerabilities.

According to Liquid Network, the funds were withdrawn via the SideSwap PAK (Peg-out Authorization Key), but no key was compromised, nor were any others. Bridge nodes have been temporarily disabled, effectively pausing the Liquid sidechain until the issue is resolved.