Liquid Network discloses $320M bitcoin withdrawal in security breach

According to a Reuters report dated Sept 6, Liquid Network, a payments and settlement network based on Bitcoin, announced on Sunday that around $320 million had been withdrawn from its federation wallet during a hacking incident.

In a post on X, Liquid Network stated that attackers it called "purported white-hat hackers" had removed roughly 4,000 of the 4,200 bitcoin held in its Liquid Federation wallet.

Liquid Network acknowledged that some Liquid wallets would be affected, apologized for the disruption, and said it had suspended the processing of new transactions.

The company added that the funds had been removed via SideSwap, a settlement platform authorized to process withdrawals from the network, while the cryptographic key used in the operation had not been compromised.