News
Public · Published
Liquid Network pauses after purported 'white-hat' hackers withdraw $320 million in bitcoin
The Liquid Network, a Bitcoin sidechain, has been paused after purported 'white-hat' hackers withdrew $320 million in bitcoin. Exchanges suspended LBTC deposits and withdrawals while Blockstream, the company behind it, works to contact those responsible.
Published:
Updated:
What happened
The Liquid Network, a Bitcoin sidechain, has been paused after purported 'white-hat' hackers withdrew $320 million in bitcoin. Exchanges suspended LBTC deposits and withdrawals while Blockstream, the company behind it, works to contact those responsible.
Confirmed
Global impact / market context
A pause in a Bitcoin sidechain, which is a separate network that lets bitcoin move faster, can shake trust in such systems. This may lead to stricter checks on similar networks and affect how investors view bitcoin-related projects.
Analyst inference
The news could hurt confidence in bitcoin sidechains and related tokens like LBTC. Investors might worry about security and pull back, possibly lowering prices of such assets. This comes amid growing interest in bitcoin-based finance.
Analyst inference
What to watch
- Watch for Blockstream's success in contacting the 'white-hat' hackers, as this determines if the $320 million is returned and whether the network can resume safely. Confirmed
- Check if exchanges resume LBTC deposits and withdrawals during the week, which would signal that the pause is temporary and confidence is being restored. Proposed
- Observe bitcoin's price and trading activity nearby, since major security events often cause short-term dips, and any quick recovery could suggest investor resilience. Analyst inference
Affected assets
- BTC — Bitcoin
- DEFI — DeFi