Hackers Drain $320M in Bitcoin from Liquid Network Sidechain
Hackers have withdrawn ~4k BTC (~$320M) from the Liquid Federation wallet
The Liquid Network, a Bitcoin sidechain developed by Blockstream, has suffered a major security breach. Purported white-hat hackers withdrew approximately 4,000 BTC (around $320 million) from the Liquid Federation wallet. The funds were taken via the SideSwap PAK (Peg-out Authorization Key), though the key itself was not compromised. Exchanges have paused LBTC deposits and withdrawals, and bridge nodes have been disabled, effectively pausing the sidechain until the issue is resolved. Other Liquid assets like USDT and RWAs remain unaffected.
Live by the sidechain, die by the sidechain.
- cypherpunks01
Seems that an Elements rangeproof cache bug may've gotten exploited. Fix for suspicious issue was committed just last week and attackers could've monitored the public commits and exploited the bug before fix was ever pushed?
Sort of self-fulfilling prophecy if true, that's a leading theory anyhow.
fix: range proof cache bind to asset and scriptpubkey
https://github.com/ElementsProject/elements/commit/c26d719c2...
- silveradogomez9
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- rgbrgb
There’s kind of an interesting thread here about open source, which is usually thought of as more secure because of more eyes on the code, actually being less secure because an accidental merge can be exploited instantly with LLM’s monitoring. Is there a lot more security value in obscurity than before?
- pingupongu
Crypto is total scam, lives of many people have been destroyed, it only works until it runs out of fools.
How many forks and psyops until people realize?
- skinfaxi
Why do they say it's white hat hackers?