DATABASES Signal 437
Hackers drain $320 million from Liquid Network, claim white-hat status and promise to return funds
↗
Hackers claiming to be white hats drained approximately 4,000 BTC ($320 million), roughly 95% of Liquid Network's federation wallet, and promised to return the funds after the underlying vulnerability is fixed.
The exploit exposed a vulnerability in Liquid Network's peg-out mechanism that allowed nearly all federation wallet funds to be withdrawn without any keys being compromised. The unusual white-hat claim and the fact that funds left through normal processing raise questions about the security of federated sidechain models.
Written by elseif from the cluster below · every claim links back to a sourceThe three things worth knowing
Approximately 4,000 BTC ($320 million), roughly 95% of Liquid Network's federation wallet, was drained through SideSwap's peg-out service.
The hackers claim to be white hats who will return funds after the vulnerability is fixed, communicating via on-chain messages.
Liquid has suspended transactions and warns of service disruptions while federation members work to restore service.
THE CLUSTER