Liquid Network Hit by $320M Security Breach as 4,000 BTC Vanish

A security breach occurred on Liquid Network on September 6, resulting in nearly 4,000 BTC being removed from the Bitcoin wallet of Liquid Federation. The federation described this as a peg-out that they did not authorize. According to an on-chain message left by the party behind the transfer, 'we are whitehats.'

The total value of the stolen BTC is approximately $320 million. This incident has raised major crypto security and custody concerns for Liquid that could impact adoption, inter-exchange settlement confidence, and market trust.