🔥 'Purported White-Hat Hackers' Withdraw $320M in Bitcoin From Liquid.
Image: Shutterstock/DecryptCreate an account to save your articles.Add on GoogleAdd Decrypt as your preferred source to see more of our stories on Google.In brief Liquid disabled its bridge nodes on Sunday after about 4,000 BTC left the federation wallet that backs L-BTC. The withdrawal used SideSwap's peg-out key, which Liquid says was not compromised, pointing instead to a bug in Elements. The wallet now holds roughly 200 BTC, around 5% of what it held before. Blockstream's Liquid sidechain has been paused since Sunday, after about 4,000 BTC worth roughly $320 million left the federation wallet that backs every L-BTC in circulation. SideSwap, a federation member running a peg-out service, said a customer sent it 4,000 L-BTC at 14:05 UTC.
It burned them under a valid authorization, and 23 minutes later the federation paid out 3,996 BTC. We are aware of a security incident on @Liquid_BTC. Purported white-hat hackers have withdrawn ~4,000 BTC (~$320 million) from the Liquid Federation wallet. The @Blockstream team is working on contacting them on-chain with a signed message. Liquid Network (@Liquid_BTC) September 6, 2026 Liquid said the funds moved through SideSwap's Peg-out Authorization Key, but that neither that key nor any other federation key was compromised.
❓ What's your take is this the start of a bigger move or just noise? Drop it below.
$BTC $ETH
#SECryptoRegulation #AICryptoIntegration #CryptoWallet
Image: Shutterstock/DecryptCreate an account to save your articles.Add on GoogleAdd Decrypt as your preferred source to see more of our stories on Google.In brief Liquid disabled its bridge nodes on Sunday after about 4,000 BTC left the federation wallet that backs L-BTC. The withdrawal used SideSwap's peg-out key, which Liquid says was not compromised, pointing instead to a bug in Elements. The wallet now holds roughly 200 BTC, around 5% of what it held before. Blockstream's Liquid sidechain has been paused since Sunday, after about 4,000 BTC worth roughly $320 million left the federation wallet that backs every L-BTC in circulation. SideSwap, a federation member running a peg-out service, said a customer sent it 4,000 L-BTC at 14:05 UTC.
It burned them under a valid authorization, and 23 minutes later the federation paid out 3,996 BTC. We are aware of a security incident on @Liquid_BTC. Purported white-hat hackers have withdrawn ~4,000 BTC (~$320 million) from the Liquid Federation wallet. The @Blockstream team is working on contacting them on-chain with a signed message. Liquid Network (@Liquid_BTC) September 6, 2026 Liquid said the funds moved through SideSwap's Peg-out Authorization Key, but that neither that key nor any other federation key was compromised.
❓ What's your take is this the start of a bigger move or just noise? Drop it below.
$BTC $ETH
#SECryptoRegulation #AICryptoIntegration #CryptoWallet