Liquid Network has faced a major security incident after around 4,000 BTC, worth roughly $320 million, was withdrawn from its federation wallet. The network then paused new transactions as a safety measure.
🔥 What Happened?
The attackers reportedly used a bug that allowed a large amount of L-BTC to be created and then converted into real Bitcoin.
Interestingly, the attackers called themselves “white-hat hackers” and said the funds could be returned after the security issue was fixed.
💰 3,400 BTC Returned
After Blockstream said the affected bridge nodes had been patched, around 3,400 BTC was returned to the Liquid Federation wallet.
However, about 598.5 BTC — worth roughly $47 million — is still with the attackers.
⚠️ Important Point
The Bitcoin main network was not hacked. The incident affected Liquid Network, a Bitcoin sidechain.
Liquid has not fully resumed normal operations yet, as more security checks and fixes are needed.
📌 My Take:
This incident is another reminder that even large crypto networks can face serious security risks.
Crypto users should always understand where their funds are stored and what risks are involved.
💬 What do you think?
Were these really white-hat hackers, or was this simply a major exploit?
#BTC #liquidnetwork #Binance $BTC
