🚨 SECURITY ALERT: Liquid Network paused after ~320M$ incident 🤔
About 4,000 $BTC out of ~4,200 #BTC held in the Liquid federation’s portfolio were withdrawn during a major incident. Liquid suspended new transactions, while SideSwap temporarily halted swaps, peg-ins, and peg-outs.
Key point: SideSwap says its systems and authorization key were not compromised. The issue would be related to a vulnerability in Elements, which allowed the creation of invalid L-BTC later exchanged for about 3,996 $BTC real units.
🎯 My analysis: this isn’t a hack of the network @Bitcoin itself, but a brutal reminder of the infrastructure risk of sidechains and bridge mechanisms.
What to watch now: possible return of the funds, a technical patch, and restoration of the 1:1 backing of L-BTC.
🛡️ Crypto risk isn’t only in the price. It’s also in the code.
#DrYo242 Your shield against volatility
#sideswapsuspendsliquidservices
About 4,000 $BTC out of ~4,200 #BTC held in the Liquid federation’s portfolio were withdrawn during a major incident. Liquid suspended new transactions, while SideSwap temporarily halted swaps, peg-ins, and peg-outs.
Key point: SideSwap says its systems and authorization key were not compromised. The issue would be related to a vulnerability in Elements, which allowed the creation of invalid L-BTC later exchanged for about 3,996 $BTC real units.
🎯 My analysis: this isn’t a hack of the network @Bitcoin itself, but a brutal reminder of the infrastructure risk of sidechains and bridge mechanisms.
What to watch now: possible return of the funds, a technical patch, and restoration of the 1:1 backing of L-BTC.
🛡️ Crypto risk isn’t only in the price. It’s also in the code.
#DrYo242 Your shield against volatility
#sideswapsuspendsliquidservices
