Liquid Network Pauses Transactions After $320M Bitcoin Security Incident

Liquid Network, a Bitcoin-focused settlement layer used primarily by crypto exchanges, has halted all new transactions following a major security breach. The incident led to approximately $320 million in bitcoin being drained from the network's federation wallet.

According to Liquid Network, roughly 4,000 of the 4,200 bitcoin held inside the affected wallet were withdrawn. The entities responsible for moving the funds have reportedly described themselves as white-hat hackers. Established by Blockstream in 2018, the settlement platform is governed by a federation comprising more than 80 cryptocurrency exchanges, financial institutions, and infrastructure firms.

Security events involving shared multi-party wallets emphasize the vital role of individual self-custody and keeping full ownership of your private keys rather than trusting pooled network infrastructure.

Source: BitcoinKE