HACKERS have drained roughly 320 million in Bitcoin from the federation wallet backing the Liquid Network, a Bitcoin sidechain developed by Blockstream used by exchanges and other financial institutions. Liquid reported on X that around 4,000 BTC were withdrawn from its federation wallet by those describing themselves as “purported white-hat hackers.” The wallet reportedly held about 4,200 BTC before the incident, meaning the attackers removed approximately 95 percent of its holdings.
The organisation said it has disabled its bridge nodes and is working with federation members to investigate, while urging exchanges to suspend L-BTC deposits and withdrawals as a precaution.
The attackers’ posture appears aimed at framing the incident as something other than a standard crypto heist; Liquid characterised the event as a suspected white-hat action rather than a straightforward theft. The post notes that the exploitation prompted actions from Liquid and federation participants, including node shutdowns and exchange advisories. The situation has been reported through linked coverage, with further details attributed to coverage at The Register.
At this stage, the precise technical methods used to access the wallet and the full scope of any subsequent transfers or reversals remain unconfirmed in the available material.