Bitcoin-based Liquid Network says $320 million withdrawn in hack

The Liquid Network, a Bitcoin-based payments and settlement system, has disclosed that hackers withdrew approximately $320 million worth of Bitcoin from its federation wallet. The breach, which occurred on Sunday, was reported on the network's X account. Around 4,000 BTC were transferred from the Liquid Federation wallet. In response, the Liquid Network temporarily disabled bridge nodes, halting new transactions and pausing the sidechain while federation members address the issue.

The funds were withdrawn using the SideSwap PAK (Peg-out Authorization Key), but the network reassured that the key itself was not compromised. Blockstream, the network's developers, are attempting to contact the involved parties through a signed message on the blockchain. The Liquid Network has not publicly named the hackers responsible for the withdrawal.

Exchanges have also been notified and have either paused or will pause LBTC deposits and withdrawals. The incident highlights the increasing sophistication of cyber threats, particularly in Africa, where financial losses from cybercrime have doubled from $192 million in 2024 to $484 million in 2025.