1 month ago
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Key Takeaways
- SideSwap processed an apparently authorized peg-out.
- The disputed L-BTC may have been bug-created.
- Valid authorization did not prove legitimate issuance.
- Bitcoin’s base network was not compromised.
- Recovery remains publicly unconfirmed.
Liquid pauses its network after the withdrawal
The Liquid Network disclosed the incident after approximately 4,000 BTC, then valued at about $320 million, left a wallet controlled by its federation.
Liquid said the withdrawal used SideSwap’s Peg-Out Authorization Key, or PAK, but maintained that neither this key nor its other authorization keys had been compromised. It described the recipients as purported white-hat hackers and said Blockstream was attempting to contact them through signed messages recorded on Bitcoin.
The network disabled its bridge nodes, preventing new transactions from being submitted. Exchanges were also asked to suspend L-BTC deposit...
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