$320M Bitcoin Heist Puts Liquid Network Security Under Scrutiny

• Liquid Network lost roughly 4,000 BTC, worth $320M, about 95% of its reserves.
• Attackers claimed white-hat status, but the 4,000 BTC return remains unconfirmed.
• The incident highlighted risks tied to sidechain software bugs rather than Bitcoin itself. 

A $320 million Bitcoin heist involving roughly 4,000 BTC has placed Liquid Network’s security model under scrutiny after the attackers claimed they were acting as “white hats.” Liquid paused activity after the withdrawal removed about 95% of the Bitcoin held in its federation wallet.

The attackers later left an on-chain message telling Liquid to “contact us on chain,” but no independent confirmation has established that they acted as ethical hackers rather than thieves.

Liquid, launched by Blockstream in 2018, uses a federation of more than 80 exchanges, infrastructure companies and asset managers. The s…

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