Industry News

Liquid Network Halted After $320 Million Bitcoin Withdrawal by Purported 'White-Hat' Hackers

The Block · 7 Sept 2026

Key Takeaway If your business holds or transacts in cryptocurrency, monitor the platforms you rely on for security incidents and be ready to pause transactions if a breach is suspected.

Blockstream has paused its Bitcoin sidechain, Liquid Network, after individuals identifying themselves as 'white-hat' hackers withdrew approximately $320 million worth of bitcoin from the platform. In response, exchanges have suspended deposits and withdrawals of LBTC, the network's wrapped bitcoin token, while the situation is investigated.

Blockstream says it is working to make contact with those responsible for the withdrawal to understand their intentions and the circumstances behind the incident. It remains unclear whether the funds were taken through a security flaw being tested and reported, or through unauthorised access, and no technical details of how the withdrawal occurred have been confirmed.

This event highlights the risks facing crypto infrastructure providers, where large sums can be moved quickly once a weakness is found, regardless of the intent behind it. Businesses that hold or transact in cryptocurrency should treat such incidents as a reminder to monitor third-party platform security closely.

Summarised by CISO AI from The Block. We link back to every original so you can read it yourself.