Bitcoin Liquid Network Pauses After Major BTC Withdrawal

The Bitcoin sidechain Liquid Network is currently offline following an unexpected withdrawal of 4,000 BTC. The total value of the assets taken is approximately 320 million dollars. Blockstream, the team behind the sidechain, confirmed the activity and initiated a pause to protect user funds.

Those behind the withdrawal reached out to Blockstream, claiming to be white hat hackers. They stated that they identified a vulnerability within the Elements codebase. The individuals promised to return the vast majority of the Bitcoin once the team successfully applies a security patch to the entire network.

This incident highlights the security complexities involved in running sidechain infrastructure. Traders are now watching for official updates on when the network will resume operations. The primary goal for the team remains securing the platform against further unauthorized access before bringing the service back online.