Liquid Network Pauses After Purported White-Hat Bitcoin Withdrawal

Liquid Network sidechain paused following $320 million BTC withdrawal; exchanges halt LBTC activity as Blockstream seeks contact.

Liquid Network sidechain paused after $320 million bitcoin withdrawal

Liquid Network, a Bitcoin sidechain operated by Blockstream, has paused operations after a withdrawal of $320 million in bitcoin attributed to purported white-hat actors.

Exchange response

Multiple exchanges have suspended deposits and withdrawals of LBTC, the token representing bitcoin on the Liquid Network.

Open questions

Blockstream is attempting to reach the parties involved. Confirmation of the exact amount, verification that the actors are white-hats, the method of withdrawal, timeline for resumption, and any impact on user funds remain unknown.

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