Bitcoin hack drains $320 mn from crypto network in latest security breach

By Suvashree Ghosh and Matt Haldane

A blockchain used by several cryptocurrency exchanges to move Bitcoin has been hacked for $320 million, the latest in a spate of breaches to shake confidence in digital-asset security.

Roughly 4,000 of the 4,200 Bitcoin held in a wallet used by Liquid Network were taken, the platform operator said in a post on X. It said the perpetrators appear to be “white-hat hackers” who exploit security flaws and typically return the funds, sometimes in exchange for a fee.

“Liquid wallets will be impacted, and we’re sorry for any inconvenience,” Liquid Network wrote, adding it has halted all new transactions. “Federation members are actively working on resolving this so we can restore normal network activity.”

Alex Thorn, head of research at crypto firm Galaxy Digital Inc., said in a post on X late Monday London time that the hackers had returned 3,400 Bitcoin, apparently keeping some $47 million worth for themselves. 

The hack is the latest in a string of recent attacks that have put crypto cybersecurity in the spotlight. Just last week, an attacker drained $6 million from a Crypto.com-linked digital-asset lending platform. In August, a hack of the popular offline Bitcoin wallet Coldcard raised questions about the safest way to store the digital asset.