Liquid Network Hit with $320m Bitcoin Heist via Software Bug

A significant security lapse has occurred on Liquid Network, a sidechain used by cryptocurrency exchanges. The breach resulted in the loss of approximately $320 million worth of Bitcoin from its reserves.

The attack targeted the federation wallet held by Blockstream, which is jointly overseen by over 80 exchanges and infrastructure providers. The hackers exploited a software bug that improperly generated BTC within the Elements system, allowing them to withdraw nearly 4,000 out of 4,200 BTC held in reserve.

Liquid Network has confirmed that user wallets will be affected and has suspended all new transactions on the platform. The network's operators are working to address the issue and restore normal activity.