#LiquidNetworkSuffers$320MExploit 🚨🔴 LIQUID NETWORK SUFFERS A $320M EXPLOIT!
A major security incident has hit Liquid Network, a Bitcoin-based settlement network used by crypto exchanges. ⚠️₿
📌 What happened:
• 💰 Around 4,000 BTC worth roughly $320M was withdrawn
• 🏦 The funds came from Liquid’s federation wallet holding about 4,200 BTC
• ⏸️ Liquid halted new transactions following the incident
• 🔐 The network says the authorization key used in the withdrawal was not compromised
• 🕵️ The actors claim to be “white hats” and have reportedly offered to return most funds after the vulnerability is fixed
⚠️ Important: This was not a hack of Bitcoin’s base layer. The incident affected Liquid’s sidechain infrastructure and its BTC-backed L-BTC system.
💡 Why it matters:
The incident highlights the security risks surrounding Bitcoin sidechains, bridges and federated custody systems. It could also increase scrutiny of L-BTC and other wrapped/pegged assets.
The biggest question now: Will the ~$320M in BTC actually be returned? 👀
$SOPH $SOLV $IOST