Liquid Network Pauses After 4,000 BTC Move
The incident affects a substantial amount of Bitcoin held within the network’s Federation wallet. Liquid said the sidechain would remain paused while the issue is investigated and resolved.
Liquid Network Reports $320 Million Bitcoin Withdrawal
According to the Cointelegraph post, Liquid Network said about 4,000 BTC was withdrawn from its Federation wallet. At the value cited in the report, the Bitcoin was worth approximately $320 million.
The funds were reportedly taken by purported white-hat hackers. The term generally refers to security researchers or other actors who identify vulnerabilities or intervene in security incidents with the stated objective of preventing further harm, although the characterization in this case remains attributed to the information reported by Cointelegraph.
The reported withdrawal involves Bitcoin held in a Federation wallet associated with Liquid, rather than representing a withdrawal from Bitcoin's broader network.
Liquid Sidechain Paused During Investigation
Liquid has paused its sidechain following the reported incident. The suspension is intended to keep activity on the network halted while the issue is addressed.
A sidechain is a blockchain network connected to another blockchain, allowing assets and transactions to operate under a separate set of rules while maintaining a relationship with the primary network. Liquid operates as a Bitcoin sidechain.
The pause means activity on Liquid is temporarily restricted while the reported wallet incident remains unresolved. Cointelegraph’s report did not provide additional details about the specific mechanism used to withdraw the 4,000 BTC or the identity of the parties involved.
Security Incident Puts Federation Wallet in Focus
The reported movement of approximately 4,000 BTC places the security of Liquid’s Federation wallet at the center of the incident.
Liquid uses a federation-based model to manage assets moving between the Bitcoin network and the Liquid sidechain. Because the reported withdrawal concerns funds held in a Federation wallet, the incident is specific to Liquid’s infrastructure and should not be interpreted as a compromise of Bitcoin’s underlying blockchain based on the information provided.
The distinction is important when assessing the scope of the reported event. The source identifies the affected funds as Bitcoin associated with Liquid’s Federation wallet, while the Liquid sidechain itself has been paused pending resolution.
For now, the key outstanding issue is the investigation into how the approximately 4,000 BTC was withdrawn and the circumstances surrounding the purported white-hat hackers. Liquid’s sidechain remains paused until the reported issue is resolved.
writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Check out other news and articles on Google News
Disclaimer:
The articles on HOKANEWS are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
HOKANEWS isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.