Liquid Network hit: "Whitehat" says ~4,000 BTC taken from Liquid Federation wallet; sidechain paused

Blockstream's Bitcoin sidechain Liquid Network said on X that an attacker identifying as a "whitehat hacker" withdrew about 4,000 BTC (roughly $320 million) from the Liquid Federation wallet, according to ME News. The incident was reported on Sept. 7 (UTC+8). Blockstream said the withdrawal was executed via SideSwap PAK, adding that the PAK key and other keys were not compromised. The company is attempting to reach the individual through on-chain messages. A number of exchanges have suspended, or are preparing to suspend, LBTC deposits and withdrawals. Other Liquid-issued assets, including USDT, DePix and RWA, are said to be unaffected. Cross-chain bridge nodes have been taken offline, and the sidechain will remain halted until the situation is resolved. (Source: Foresight News)