White-Hat Hackers Drain $320 Million from Liquid Network

Liquid Network, a Bitcoin Layer 2 solution, has been hit by a significant hack. White-hat hackers withdrew nearly 4,000 BTC worth $320 million from the platform.

The exploit resulted in the loss of nearly 95% of Liquid Network's reported Bitcoin reserves, according to the Mempool tracker released by the platform.

The hackers left an on-chain message saying, 'We are whitehats. contact us on chain.'

Liquid Network has paused all bridge activity and new transactions, and has alerted exchanges that have halted deposits of Liquid Bitcoin (LBTC), a tokenized, 1:1 BTC-backed asset native to the platform.