Liquid Network paused after $320M in bitcoin withdrawn by purported white-hat hackers; exchanges suspend LBTC deposits and withdrawals.
Security & Exploits ·
Liquid Network, a Bitcoin sidechain, halted operations after approximately $320 million in bitcoin was withdrawn by individuals described as "white-hat" hackers. In response, major exchanges moved to suspend deposits and withdrawals of LBTC, the network's native asset, while Blockstream, which operates the sidechain, attempted to establish contact with those responsible for the withdrawal.
The incident prompted a network-wide pause as stakeholders assessed the scope and nature of the capital movement. The term "white-hat" suggests the actors may have been security researchers or ethical hackers, though this characterization remains unconfirmed and the actual intentions behind the withdrawal are not yet established.
Key questions remain unresolved: the identity and stated purpose of those who executed the withdrawal, whether Blockstream has successfully communicated with them, and the timeline for Liquid Network resumption. The suspension of exchange support for LBTC indicates the incident was treated with urgency by the wider ecosystem, though details on the technical vulnerability exploited have not been disclosed.