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Liquid Network hack drains most of its main Bitcoin wallet
The $320 million breach highlights risks across DeFi infrastructure beyond seized Bitcoin, as analysts point to ongoing exploits and a higher attack pace in 2026.
A hack on the Bitcoin-linked Liquid Network resulted in losses of about $320 million and drained roughly 4,000 Bitcoin from the platform’s main wallet, which Liquid said is about 95% of what it held there. Insurance Journal said the incident also underscores that the damage from DeFi breaches can extend beyond the tokens taken, because users depend on the layers around a blockchain, including wallets, custody arrangements, and transaction infrastructure. Insurance Journal reported that the Liquid Network was designed to make the largest cryptocurrency more useful for trading and settlement, but the hack illustrates vulnerabilities in the surrounding systems that help decentralized finance operate. Predicate CEO Nikhil Raghuveera said continued exploits reinforce concerns among fintechs and institutions that DeFi is not yet ready for the institutional security standards assumed in legacy markets, noting that decentralized designs can leave users dependent on fragmented infrastructure rather than centralized reversals and safeguards. The story also cited broader breach trends, noting that about $1.4 billion had been stolen by hackers so far in 2026 across 250 attacks, compared with $2.7 billion over 146 attacks in 2025, based on DefiLlama data. It added that 26 of the assaults this year, more than 10%, targeted bridges and cross-chain infrastructure, a category that had only three hacks identified in 2025 by DefiLlama. Insurance Journal said cross-chain links are a critical component of DeFi because they enable users to move and convert assets across blockchains, but it flagged that many cross-chain projects and limited cybersecurity vetting capacity have increased the risk surface. The article referenced other 2026 breaches as well, including hacks involving Kelp DAO and Drift Protocol that together accounted for $588 million in losses, with Liquid describing the attackers as “white hats.”
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