🚨320M in Bitcoin just disappeared from a major BTC sidechain. And the story gets even stranger Around 4,000 $BTC were withdrawn from Liquid Network’s Federation wallet, representing roughly 95% of the Bitcoin reserves backing the network’s L-BTC. Liquid has since paused the sidechain and exchanges have suspended L-BTC deposits and withdrawals. But this doesn’t look like a typical hack. The actors moved the funds to a single Bitcoin address and left an on-chain message saying “we are whitehats. contact us on chain.” Liquid says the withdrawal used the SideSwap Peg-out Authorization Key, but that key itself was not compromised. Even more interesting: the wallet holding the BTC has reportedly sent a message offering to return most of the funds after the vulnerability is fixed. As of the latest reports, however, the Bitcoin has not been returned. So the biggest question isn’t just who took the BTC? It’s whether this was actually a white-hat intervention, or an exploit that simply hasn’t turned into a conventional theft yet. Would you trust someone who takes $320M in BTC and then asks the protocol to contact them on-chain? 🤔 #BTC #Bitcoin