#LiquidNetworkSuffers$320MExploit
đ¨đ´ LIQUID NETWORK SUFFERS A $320M EXPLOIT!
A major security incident has hit Liquid Network, a Bitcoin-based settlement network used by crypto exchanges. â ď¸âż
đ What happened:
⢠đ° Around 4,000 BTC worth roughly $320M was withdrawn
⢠đŚ The funds came from Liquidâs federation wallet holding about 4,200 BTC
⢠â¸ď¸ Liquid halted new transactions following the incident
⢠đ The network says the authorization key used in the withdrawal was not compromised
⢠đľď¸ The actors claim to be âwhite hatsâ and have reportedly offered to return most funds after the vulnerability is fixed
â ď¸ Important: This was not a hack of Bitcoinâs base layer. The incident affected Liquidâs sidechain infrastructure and its BTC-backed L-BTC system.
đĄ Why it matters:
The incident highlights the security risks surrounding Bitcoin sidechains, bridges and federated custody systems. It could also increase scrutiny of L-BTC and other wrapped/pegged assets.
The biggest question now: Will the ~$320M in BTC actually be returned? đ
$SOPH $SOLV $IOST
đ¨đ´ LIQUID NETWORK SUFFERS A $320M EXPLOIT!
A major security incident has hit Liquid Network, a Bitcoin-based settlement network used by crypto exchanges. â ď¸âż
đ What happened:
⢠đ° Around 4,000 BTC worth roughly $320M was withdrawn
⢠đŚ The funds came from Liquidâs federation wallet holding about 4,200 BTC
⢠â¸ď¸ Liquid halted new transactions following the incident
⢠đ The network says the authorization key used in the withdrawal was not compromised
⢠đľď¸ The actors claim to be âwhite hatsâ and have reportedly offered to return most funds after the vulnerability is fixed
â ď¸ Important: This was not a hack of Bitcoinâs base layer. The incident affected Liquidâs sidechain infrastructure and its BTC-backed L-BTC system.
đĄ Why it matters:
The incident highlights the security risks surrounding Bitcoin sidechains, bridges and federated custody systems. It could also increase scrutiny of L-BTC and other wrapped/pegged assets.
The biggest question now: Will the ~$320M in BTC actually be returned? đ
$SOPH $SOLV $IOST
