Security· ★★★★· bearish·

Liquid Network Lost ~4,000 BTC Worth $320M in Elements Bug Exploit

  • About 4,000 BTC worth $320 million withdrawn from the Liquid Federation wallet
  • Blockstream said federation keys and the PAK were not compromised
  • Roughly 3,400 BTC, or 85% of funds, returned by September 8
  • Actors retained about 598.5 BTC worth $47 million; no compensation plan
Why it matters: L-BTC peg operations remain suspended, so exchanges, OTC desks and DeFi protocols on Liquid cannot redeem L-BTC for BTC.
Source: Coincu