Liquid Network Sees $320M BTC Move Amid White Hat Claims

Over $300 million worth of Bitcoin recently exited the Liquid Network, sparking confusion across the market. The massive transfer involved nearly 4,000 BTC, which accounts for approximately 95 percent of the network reserves. The transaction was remarkably cheap, costing just 21 cents in fees to execute.

Following the transfer, the individual responsible attached a clear message to the blockchain stating they are white hat actors and requesting contact. This move occurred shortly after the user burned the corresponding tokens required to pull assets from the network bridge. Despite the scale of the transfer, the remaining reserves appear fully covered, as the protocol rules require tokens to be destroyed before coins leave the bridge.

The situation remains tense because moving these funds normally requires the approval of a federation of fifteen members, with at least eleven signatures needed. The coins were sent to a brand new address that does not appear on the network list of approved destinations. Blockstream has yet to comment on how this event occurred under their security structure.

Traders are now watching closely to see if this turns into a bounty negotiation similar to past bridge incidents. For now, the funds remain stationary while the crypto community waits for either the federation or the unidentified actor to provide more information about the security breach.