Hackers have withdrawn ~4k BTC (~$320M) from the Liquid Federation wallet
The Liquid Network has suspended operations after hackers withdrew approximately 4,000 BTC from the Liquid Federation wallet. Blockstream is currently working to contact the attackers while exchanges pause deposits and withdrawals of LBTC.
Why it matters
This incident represents a significant security breach in the crypto ecosystem, impacting the stability and trust of the Liquid sidechain.
Liquid Network 🌊 on X: "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 Purported white-hat hackers have withdrawn ~4,000 BTC (~$320 million) from the Liquid Federation wallet.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.
What we know so far is that the funds were withdrawn via the SideSwap PAK (Peg-out Authorization Key), but that key was not compromised, nor were any others.
Exchanges have been notified and have already paused (or will pause) LBTC deposits and withdrawals. Other Liquid assets such as USDT, DePix, and RWAs are unaffected by this security incident.
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