Liquid Network Hit by $320M Bitcoin Heist, 'White Hat' Hackers Return Most

Liquid Network's federation wallet suffered a significant loss when roughly $320 million in Bitcoin was withdrawn on Sept. 6, leaving nearly all of its approximately 4,200 BTC reserve depleted.

The unauthorized withdrawal used Liquid's Peg-out Authorization Key (PAK) without compromising the key itself, an unusual incident that has prompted operators to pause the network.

Liquid reported that around 3,400 of the stolen crypto has since been returned by the attackers, who identified themselves as white hat hackers claiming they wanted to help. A total of 600 BTC remains outstanding, however.