Liquid Bitcoin Sidechain Suspends Operations After $320M Withdrawal
- Approximately 4,000 Bitcoin (worth $320 million) were withdrawn from Liquid’s federation wallet.
- The withdrawal represented about 95% of the wallet’s total balance of approximately 4,200 BTC.
- Liquid paused operations and disabled bridge nodes to prevent new transactions.
- Blockstream is in communication with the actors, who claim to be white-hat hackers, regarding a vulnerability patch.
- Other assets on the network, including USDT and DePix, remain unaffected by this incident.
The Liquid sidechain is currently paused as its federation members work to address the security issue that led to the significant withdrawal of funds. The situation has raised concerns about the integrity of the network and its underlying technology.
At present, no funds have been returned following the withdrawal of approximately 4,000 BTC. Liquid continues to investigate while ensuring that other assets on its network remain secure.
