Bitcoin sidechain Liquid pauses after purported ‘white hats’ withdraw $320M in BTC

Bitcoin sidechain Liquid paused operations after actors claiming to be white-hat hackers withdrew about 4,000 Bitcoin worth $320 million from its federation wallet. 

Cointelegraph reached out to Liquid Network and Blockstream for comment.

The withdrawn Bitcoin represented roughly 95% of the wallet’s approximately 4,200 BTC balance before the incident. Liquid said other assets issued on the network, including USDT, DePix and real-world assets, were unaffected. The sidechain remained paused while federation members worked to fix the vulnerability. 

This is a developing story, and further information will be added as it becomes available.