White hat hacker drains ~4,200 BTC from Liquid Network, worth $320M

Purported white-hat hackers withdrew approximately 4,000 to 4,200 BTC, valued at $320M, from the Liquid Network federation reserves backing L-BTC. Consequently, bridge nodes were disabled and the sidechain was paused. This incident raises critical concerns regarding the security and trustworthiness of federated sidechain models, necessitating urgent scrutiny. The funds were taken from the federation wallet, highlighting vulnerabilities in the system managed by Blockstream, which has now halted operations to address the security breach.