liquid network · Aqua Wallet
~4,000 BTC withdrawn from Liquid Federation wallet; Liquid network suspended
Aqua Wallet confirms a security incident on the Liquid network: presumed white-hat hackers withdrew about 4,000 BTC (~$320 million) from the Federation wallet through a Peg-out Authorization Key used by SideSwap, while the key itself was not compromised. Exchanges have suspended L-BTC deposits and withdrawals, bridge nodes have been temporarily disabled, and the Liquid network has effectively halted until the incident is resolved. Other Liquid assets (USDT, DePix, RWA) are unaffected.
Actions to take
Do not send or expect transactions on the Liquid network, or rely on exchange L-BTC deposits/withdrawals, until the network is restored; follow official Blockstream updates at the link below.
Source: x.com - AquaBitcoin
Incident history
- 06 Sept~4,000 BTC withdrawn from Liquid Federation wallet; Liquid network suspended
- 07 SeptAbout 4,000 BTC withdrawn without authorization from Liquid Federation wallet; some already returned
- 08 SeptBlockstream deploys updated software and prepares a coordinated restart of the Liquid network
- 08 SeptBlockstream identifies cause of Liquid incident: range proof vulnerability in the Elements protocol
- 08 SeptBlockstream: Liquid network restart expected in 4–5 days
- 09 SeptFollowing the Liquid incident, a wave of phishing impersonating Blockstream and Liquid
- 10 SeptLiquid produces blocks again, but without transactions for now; peg operations remain suspended
- 10 SeptLiquid transactions are going through again; peg operations remain suspended for now
- 10 SeptLiquid resumes transactions, peg-outs remain disabled; node operators urged to update Elements immediately