Liquid Network hit: "Whitehat" says ~4,000 BTC taken from Liquid Federation wallet; sidechain paused
AI Market Summary
A reported ~4,000 BTC withdrawal from the Liquid Federation wallet and the temporary halt of the Liquid sidechain raises acute counterparty and operational-risk concerns across Liquid-based rails (LBTC, bridging, and exchange flows). Even if Blockstream claims keys were not compromised and other Liquid assets are unaffected, suspending bridge nodes and pausing LBTC deposits/withdrawals can disrupt liquidity and risk appetite in connected markets.
Impact level
● High
Affected assets
BTC/USDT-0.14%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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Blockstream's Bitcoin sidechain Liquid Network said on X that an attacker identifying as a "whitehat hacker" withdrew about 4,000 BTC (roughly $320 million) from the Liquid Federation wallet, according to ME News. The incident was reported on Sept. 7 (UTC+8).
Blockstream said the withdrawal was executed via SideSwap PAK, adding that the PAK key and other keys were not compromised. The company is attempting to reach the individual through on-chain messages.
A number of exchanges have suspended, or are preparing to suspend, LBTC deposits and withdrawals. Other Liquid-issued assets, including USDT, DePix and RWA, are said to be unaffected. Cross-chain bridge nodes have been taken offline, and the sidechain will remain halted until the situation is resolved. (Source: Foresight News)
