A security incident involving the withdrawal of approximately 4,000 BTC from the federation wallet of Liquid Network, a Bitcoin sidechain, has led to the suspension of new transactions on the network.
Liquid Network said on X on September 6 that approximately 4,000 BTC had been withdrawn from the roughly 4,200 BTC held in the federation wallet backing L-BTC. The funds were worth about $320 million at the time, representing approximately 95% of the wallet’s holdings.
Liquid said the party that withdrew the funds claims to be a “white hat,” but did not characterize this as a confirmed fact. The withdrawal was carried out through SideSwap, an approved payment platform, and Liquid said there was no evidence that the relevant cryptographic keys had been stolen.
Following the incident, Liquid Network disabled its bridge nodes and suspended new transactions. Federation members are working to resolve the issue and restore normal network operations.
Sources
- Reuters — Bitcoin-based Liquid Network says $320 million withdrawn in hack — 2026-09-07 — ReutersBitcoin Magazine — They Took $320 Million In Bitcoin — Then Left A Note: “We Are Whitehats” — 2026-09-07 — Bitcoin Magazine