White-Hat Actor Steals Nearly $319M in BTC from Liquid Network

A white-hat actor has allegedly taken nearly 4,000 Bitcoin worth approximately $319 million from the Liquid Network.

The withdrawal was executed via SideSwap using a Peg-out Authorization Key, according to an incident update posted by Blockstream-run sidechain community. However, Liquid stated that the key used was not compromised.

Liquid's federation wallet balance dropped sharply from roughly 4,200 BTC to about 207.275 BTC, prompting renewed scrutiny of how Liquid's peg security functions when something unusual bypasses expected controls.