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Crypto

White-Hat Hackers Freeze Liquid Sidechain with $320M BTC Withdrawal

Guavy AI Editorial Team
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BTC
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Liquid Network, a sidechain for Bitcoin, halted operations after hackers withdrew about 4,000 BTC worth $320 million from the federation wallet backing L-BTC. The withdrawal represented roughly 95% of the wallet's Bitcoin balance.

The actors claimed to be white-hat hackers and said they would return most of the funds once a vulnerability in Elements, the open-source software underpinning Liquid, is patched across every node.

SidewSwap blamed an Elements bug for allowing unbacked L-BTC to be redeemed through what looked like a normal peg-out. This left the federation wallet with roughly 200 BTC without warning network operators.

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