$320 Million in Bitcoin Withdrawn from Liquid Network, Transactions Halted

A security incident occurred on the Bitcoin-based Liquid Network, resulting in the withdrawal of 4,000 Bitcoin worth approximately $320 million from the federation wallet. Following this development, new transactions on the network were temporarily suspended. The incident is described as an attack on the federation wallet within Liquid Network's governance structure. The transfer of a large amount of Bitcoin as a result of the attack has raised concerns about the network's operational security. Following the development, deposit and withdrawal operations for L-BTC, the Bitcoin asset used on the Liquid network, were suspended. This temporarily restricted users' access to their funds, while authorities are reported to be investigating the incident. Liquid Network is known as a sidechain solution designed to enable faster and more confidential Bitcoin transfers. This security breach has brought issues of custody and network security in the cryptocurrency ecosystem back to the forefront. This is not investment advice.