HACKERS JUST DRAINED ABOUT 4,000 BITCOIN WORTH $320M FROM LIQUID NETWORK ๐จ๐๐ธ
Liquid Network confirmed a massive security breach where roughly 4,000 $BTC (worth about $320M) was drained from its reserve wallet. ๐โ ๏ธ
The actors left an on-chain message inside a Bitcoin OP_RETURN note claiming: "we are whitehats. contact us on chain." ๐งพ
What Is Liquid Network? ๐งญ๐
Liquid Network is a Bitcoin sidechain developed by Blockstream for fast and confidential transfers. For every Liquid Bitcoin (L-BTC) minted on the sidechain, one real Bitcoin must sit locked in the reserve wallet.
How The Exploit Happened โ๏ธ๐
The withdrawal used an authorization key connected to SideSwap, but no private keys were stolen. ๐
Instead, researchers point to a critical inflation flaw inside Elements (the software that powers Liquid). This allowed the actors to create unbacked L-BTC out of thin air and redeem them for real Bitcoin from the reserve vault. ๐งฎ
Current Network Status ๐๐
๐ถ Bridge nodes are disabled and the sidechain is paused.
๐ท Crypto exchanges suspended all L-BTC deposits and withdrawals.
๐ธ Tether USDT and tokenized assets on Liquid are safe, but transfers remain halted.
๐น All 3,998.5 BTC remains unmoved in the actor's Bitcoin address.
Blockstream has sent encrypted PGP messages to negotiate, but taking 95% of reserves without warning raises serious skepticism. โ๏ธ
have you ever used Liquid Network? ๐
#Bitcoin #LiquidNetwork #CryptoSecurity #BTC #Blockstream
Liquid Network confirmed a massive security breach where roughly 4,000 $BTC (worth about $320M) was drained from its reserve wallet. ๐โ ๏ธ
The actors left an on-chain message inside a Bitcoin OP_RETURN note claiming: "we are whitehats. contact us on chain." ๐งพ
What Is Liquid Network? ๐งญ๐
Liquid Network is a Bitcoin sidechain developed by Blockstream for fast and confidential transfers. For every Liquid Bitcoin (L-BTC) minted on the sidechain, one real Bitcoin must sit locked in the reserve wallet.
How The Exploit Happened โ๏ธ๐
The withdrawal used an authorization key connected to SideSwap, but no private keys were stolen. ๐
Instead, researchers point to a critical inflation flaw inside Elements (the software that powers Liquid). This allowed the actors to create unbacked L-BTC out of thin air and redeem them for real Bitcoin from the reserve vault. ๐งฎ
Current Network Status ๐๐
๐ถ Bridge nodes are disabled and the sidechain is paused.
๐ท Crypto exchanges suspended all L-BTC deposits and withdrawals.
๐ธ Tether USDT and tokenized assets on Liquid are safe, but transfers remain halted.
๐น All 3,998.5 BTC remains unmoved in the actor's Bitcoin address.
Blockstream has sent encrypted PGP messages to negotiate, but taking 95% of reserves without warning raises serious skepticism. โ๏ธ
have you ever used Liquid Network? ๐
#Bitcoin #LiquidNetwork #CryptoSecurity #BTC #Blockstream
