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About $320M in bitcoin withdrawn from Blockstream Liquid federation wallet

Liquid said bridge nodes were disabled and the L-BTC sidechain paused after the withdrawal, leaving only a little over 200 BTC reported in its federation reserves.

Reported · Written up by our desk · Market Structure

Bitcoin Magazine reported that Blockstream’s Liquid Network said purported white-hat hackers withdrew about 4,000 bitcoin, worth roughly $320 million, from the federation wallet backing L-BTC.

The outlet said Liquid disabled bridge nodes and paused the sidechain. It added that other issued assets, including USDT, DePix, and RWAs, were not affected by the incident.

Bitcoin Magazine also noted that Liquid is a federated sidechain of Bitcoin created by Blockstream, where the treasury uses a 15-member multisig and requires 11 signatures to move funds.

According to the article, the treasury held over 4,200 BTC before the incident, but Blockstream’s proof-of-reserves page showed a little over 207 BTC left after the peg-out withdrawal of 4,019.4 BTC, and the hacked funds were moved and followed by OP_RETURN messages.

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