Alleged White-Hat Hackers Withdraw 4,000 bitcoin from Blockstream’s Liquid Network Federation Reserves

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

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Liquid halts network after white-hat hackers withdraw $320M in Bitcoin

Liquid Network, a Bitcoin sidechain built and maintained by Blockstream, has temporarily halted its network after purported white-hat hackers took about 4,000 BTC, worth around $320 million, from the Liquid Federation wallet, the project said in a Sept. 6 statement.Blockstream said the withdrawal w…

• Liquid Network has halted operations after white-hat hackers withdrew approximately $320 million in Bitcoin.
• The incident involved the SideSwap PAK and has led to the disabling of bridge nodes and pausing of LBTC deposits/withdrawals, though other assets like USDT and tokenized RWAs are unaffected.
• Blockstream is working with hackers and federation members to restore operations, while Aqua wallet users are experiencing functional impacts.

Topics: Blockchain usage, Risk default, Institutional adoption, Ethereum evm l 1 s, Smart contract vulnerabilities, Banking depository pilots

Tags: #liquidnetwork #blockstream #whitehathackers #bitcoinsidechain #securityincident #tokenizedrealworldassets #lbtc #sideswappak

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