Bitcoin News: Liquid Network Drained of $320M as Sidechain Halts
Key Insights
- Bitcoin News: The Liquid Network paused after roughly 4,000 BTC left federation reserves.
- SideSwap said invalid L-BTC triggered a valid peg-out through its service.
- On-chain messages indicated that the actor planned to repay after a network patch.
Bitcoin News focused on Liquid Network after roughly 4,000 BTC left its federation wallet on Sept. 6, 2026. Liquid paused the sidechain after the withdrawal exposed a failure in its peg-out process. Blockstream and federation members began investigating the underlying software flaw.
The incident tested Liquid’s federated security model without affecting Bitcoin’s base layer. Liquid and SideSwap stated that no Peg-out Authorization Key was compromised. Instead, their statements pointed to a software validation failure involving Elements.
Bitcoin News: Liquid Halts After $320M BTC Withdrawal
Liquid Network stated that purported white-hat hackers withdrew about 4,000 BTC, worth roughly $320 million. The network disabled bridge nodes and told exchanges to pause Liquid Bitcoin deposits and withdrawals. The network said USDT, DePix, and tokenized real assets were unaffected.
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