Bitcoin Magazine Alleged White-Hat Hackers Withdraw 4,000 bitcoin from Blockstream’s Liquid Network Federation Reserves Liquid Network said purported
- Alleged white-hat hackers exploited an inflation bug on Blockstream's Liquid Network to mint approximately 4,019 LBTC.
- These hackers then used a SideSwap peg-out key to withdraw around 4,000 BTC (valued at $320 million) from the federation reserves, significantly depleting them.
- The incident has led to the pausing of bridge nodes and the sidechain, halted L-BTC deposits/withdrawals, and raised serious security concerns for federated sidechains.
Topics: Asset types, Blockchain usage, Risk default, Financial instruments, Ethereum evm l 1 s, Smart contract vulnerabilities
Tags: #liquidnetwork #blockstream #whitehathackers #bitcoin #lbtc #inflationbug #federationreserves #sidechain #securitybreach #pegout