Liquid Whitehat Withdrawal Sparks Security Concerns

A recent transaction involving 3,996 BTC has left Liquid's security controls under scrutiny after being described as a 'whitehat' operation.

The funds were withdrawn from federation-controlled reserves and valued at approximately $318.4 million when Bitcoin was trading near $79,675.

Ledger CTO Charles Guillemet questioned the legitimacy of the whitehat claim, suggesting that true researchers would disclose vulnerabilities before making substantial withdrawals.

The actors behind the withdrawal used SideSwap's Peg-out Authorization Key (PAK) to facilitate the transfer, but claimed their key itself and other authorization keys were not compromised.