#LiquidNetworkSuffers$320MExploit
🚨 A $320M Bitcoin security incident just put Liquid Network under serious pressure — but the story has taken an unusual turn.
Around 4,000 BTC, worth roughly $320 million, was withdrawn from Liquid Network’s federation wallet after a security vulnerability was exploited.
Liquid temporarily paused network activity while the issue was investigated. The withdrawal was processed through SideSwap’s peg-out system, although Liquid said the authorization key itself was not compromised.
The party behind the withdrawal described itself as a white-hat hacker and indicated the funds could be returned after the vulnerability was fixed.
That has now partly happened.
After Blockstream said its bridge nodes had been patched, roughly 3,400 BTC — about 85% of the withdrawn amount — was returned, while nearly 600 BTC remained with the attacker at the latest reported update.
Why does this matter?
The incident highlights how security risks can emerge in the infrastructure connecting Bitcoin with sidechains and settlement systems — even without Bitcoin’s base network itself being compromised.
The next thing to watch is whether the remaining BTC is returned and what the final technical investigation reveals about the vulnerability.
Sometimes the biggest security incidents reveal more about infrastructure risk than price action does. 👀
#bitcoin #BTC #liquidnetwork #CryptoSecurityAlert
$SOPH $UAI $BR
🚨 A $320M Bitcoin security incident just put Liquid Network under serious pressure — but the story has taken an unusual turn.
Around 4,000 BTC, worth roughly $320 million, was withdrawn from Liquid Network’s federation wallet after a security vulnerability was exploited.
Liquid temporarily paused network activity while the issue was investigated. The withdrawal was processed through SideSwap’s peg-out system, although Liquid said the authorization key itself was not compromised.
The party behind the withdrawal described itself as a white-hat hacker and indicated the funds could be returned after the vulnerability was fixed.
That has now partly happened.
After Blockstream said its bridge nodes had been patched, roughly 3,400 BTC — about 85% of the withdrawn amount — was returned, while nearly 600 BTC remained with the attacker at the latest reported update.
Why does this matter?
The incident highlights how security risks can emerge in the infrastructure connecting Bitcoin with sidechains and settlement systems — even without Bitcoin’s base network itself being compromised.
The next thing to watch is whether the remaining BTC is returned and what the final technical investigation reveals about the vulnerability.
Sometimes the biggest security incidents reveal more about infrastructure risk than price action does. 👀
#bitcoin #BTC #liquidnetwork #CryptoSecurityAlert
$SOPH $UAI $BR
