DATABASES Signal 111
Blockstream's Liquid Network halts transactions after purported white-hat hackers withdraw ~4,000 of 4,200 bitcoin from federation wallet
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Blockstream's Liquid Network, a settlement network used by cryptocurrency exchanges, stopped processing new transactions after actors described as "purported white-hat hackers" withdrew approximately 4,000 of the 4,200 bitcoin held in its federation wallet.
Only one feed carried this story, so corroboration is limited and the details should be treated accordingly. The near-total drainage of a federation wallet backing a settlement network for exchanges exposes the operational fragility of federated custody models. Engineers building on or integrating with federated sidechains should treat this as a concrete reminder that federation multisig does not eliminate single-wallet failure modes.
Written by elseif from the cluster below · every claim links back to a sourceThe three things worth knowing
Blockstream's Liquid Network halted new transactions after approximately 4,000 of 4,200 bitcoin were withdrawn from its federation wallet by actors described as "purported white-hat hackers."
The Liquid Network functions as a settlement network for cryptocurrency exchanges, so the transaction halt directly impacts exchange operations relying on it.
Only one feed carried this event, meaning the details lack independent corroboration at this time.
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