Bitcoin Worth $320 Million Taken From BTC Layer 2 Solution by 'White-Hat Hackers' — 'Contact Us on Chain'

Bitcoin (CRYPTO: BTC) Layer 2 solution Liquid Network said on Sunday that white-hat hackers drained BTC worth tens of millions from the platform.

What Exactly Happened

Liquid Network stated on X that hackers withdrew nearly 4,000 BTC worth $320 million and that it has paused all bridge activity and new transactions.

“Bridge nodes have been temporarily disabled, so no new transactions can be submitted to the network. Effectively, the Liquid sidechain is paused until this issue is resolved,” the platform announced.

Liquid platform said it has alerted exchanges that have halted deposits of Liquid Bitcoin (LBTC)—a tokenized, 1:1 BTC-backed asset native to the platform.

“Liquid wallets will be impacted, and we’re sorry for any inconvenience. Federation members are actively working on resolving this so we can restore normal network activity,” it added.

‘Contact Us On Chain’

The exploit resulted in the loss of nearly 95% of Liquid Network’s reported Bitcoin reserves, according to the Mempool tracker released by the platform.

The hackers left an on-chain message, saying, “We are whitehats. contact us on chain.”

White hat hackers, also known as ethical hackers or security professionals, use their knowledge to identify and fix vulnerabilities in computer systems.