White-Hat Hackers Drain $320M in BTC from Liquid Network

The Liquid Network, a layer 2 solution for Bitcoin, has been hacked by 'white-hat hackers' who drained nearly $320 million worth of BTC from the platform. The attackers withdrew approximately 4,000 BTC and left an on-chain message stating, 'We are whitehats. contact us on chain.'

Liquid Network has paused all bridge activity and new transactions, with bridge nodes temporarily disabled to prevent further losses. Exchanges have halted deposits of Liquid Bitcoin (LBTC), a tokenized asset native to the platform.

The hack resulted in the loss of nearly 95% of Liquid Network's reported Bitcoin reserves, according to the Mempool tracker. The incident comes amid a wave of security breaches and thefts in the cryptocurrency world, with a recent example being the hacking of Coldcard Crypto Wallets last month, resulting in the theft of $88 million in BTC.