# BREAKING 🚨 Liquid Network suffers HACKER ATTACK The **Liquid Network**, the Bitcoin sidechain developed by Blockstream, suffered a serious security incident this Sunday (6). Approximately **4,000 BTC**, valued at around **US$ 320 million**, were withdrawn from Liquid's wallet. The amount represented approximately **95% of the network's Bitcoin reserves**, which were close to 4,200 BTC before the incident. The operation occurred through a peg-out associated with **SideSwap PAK**. Liquid reported that the Federation keys were not compromised, but the vulnerability that allowed the withdrawal is still being investigated. ## What happened - Approximately **4,000 BTC were withdrawn** from Liquid's reserves. - Those responsible **claim to be "white hats"**, that is, hackers who allegedly exploited the vulnerability to prevent malicious exploitation. - A message was logged in OP_RETURN: **"we are whitehats. contact us on chain."** - Blockstream is already attempting to contact those responsible via a signed on-chain message. - According to available information, the funds remain at the address to which they were sent. - Liquid has temporarily deactivated its bridge nodes, effectively pausing the sidechain while the investigation continues. ## What this means The main immediate impact is on LBTC, the Bitcoin issued on Liquid. The network has notified exchanges, which have suspended or announced the suspension of LBTC deposits and withdrawals. The disruption may also affect wallets and other services that depend on Liquid's infrastructure. To date, Liquid states that other assets issued on the network, including USDT, DePix, and tokenized assets, have not been directly affected by the incident. This does not mean, however, that services using Liquid's infrastructure are functioning normally. What to do now **If you own LBTC:** - Do not attempt any new **peg-ins or peg-outs** until the situation is clarified. - Do not attempt any transfers on the Liquid side-chain, including withdrawals from exchanges. - Follow only the official announcements from **Liquid Network, Blockstream, and your exchange/wallet**. - Do not consider your BTC recovered or lost; wait for further information. #bitcoin #lbtc #liquid #hack