Hackers Withdraw $300,000,000 in Bitcoin From Liquid Network, Claim Attack Is Friendly

What happened

Hackers withdrew about 4,000 Bitcoin, worth roughly $320 million, from the Liquid Network's federation wallet using the SideSwap PAK. They did not compromise keys, and they claim the attack was friendly. Exchanges paused LBTC activity and temporarily disabled the sidechain.

Confirmed

Global impact / market context

This event shows that even sidechains, which are separate networks built on Bitcoin, can face security risks. If exchanges paused LBTC, which is Bitcoin wrapped for use on Liquid, it could reduce trust and slow trading, affecting investors who hold or use such assets.

Analyst inference

Bitcoin's price may react to news of large withdrawals, as investors worry about security. However, since the hackers claim it was friendly and keys were safe, the impact could be limited. Still, temporary exchange pauses on LBTC could reduce trading activity and investor confidence in similar networks.

Analyst inference

What to watch

1. Watch whether the hackers return the 4,000 Bitcoin, as they claim the attack was friendly. If returned, it may reduce concerns about theft and help restore normal operations on the Liquid Network. Confirmed
2. Investors should monitor when exchanges resume LBTC trading and re-enable the sidechain. A quick restart could signal that the issue is resolved, while delays might indicate deeper problems or ongoing investigations. Proposed
3. Observe if other Bitcoin sidechains or similar networks increase security measures after this event. Stronger safeguards could prevent future attacks, but they might also slow transactions or raise costs for users and businesses. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• dailyhodl.com