Hackers Drain $320M in Bitcoin from Liquid Network Sidechain

Hackers have withdrawn ~4k BTC (~$320M) from the Liquid Federation wallet

The Liquid Network, a Bitcoin sidechain developed by Blockstream, has suffered a major security breach. Purported white-hat hackers withdrew approximately 4,000 BTC (around $320 million) from the Liquid Federation wallet. The funds were taken via the SideSwap PAK (Peg-out Authorization Key), though the key itself was not compromised. Exchanges have paused LBTC deposits and withdrawals, and bridge nodes have been disabled, effectively pausing the sidechain until the issue is resolved. Other Liquid assets like USDT and RWAs remain unaffected.