$320M Bitcoin Hack: What Really Happened to Liquid Network?

On Sept. 6, Liquid Network disclosed that about 4,000 BTC — about $320 million at that time — had been withdrawn from Liquid Federation wallet. What Happened to Liquid Network?

$320 Million in Bitcoin Was Withdrawn From Liquid’s Federation Wallet Liquid Network $320 million hack affected the L-BTC issued against Bitcoin sidechain, but not Bitcoin blockchain, because funds are separate.

Liquid initially stated that the withdrawal was made via SideSwap’s Peg-out Authorization Key (PAK) and that the PAK was not compromised. Later reports showed that SideSwap did send 4,000 L-BTC via SideSwap’s Peg-out service and burned it with valid authorization.

Liquid Federation subsequently released 3,996 BTC.