Liquid Network Pauses Sidechain After 4,000 BTC Withdrawn from Reserves
Liquid Network disabled bridge nodes and paused operations after roughly 4,000 BTC left the federation wallet backing L-BTC.
Liquid Network, the Bitcoin sidechain developed by Blockstream, has paused operations after reporting that approximately 4,000 bitcoin were withdrawn from the federation wallet that backs L-BTC. The network team described the move on social media as an alleged white-hat operation.
According to the Liquid Network team, bridge nodes were disabled and the sidechain was halted as a precaution. The pause affects the transfer of assets between the Bitcoin mainchain and the Liquid sidechain while the situation is assessed.
Key Details
- About 4,000 BTC was withdrawn from the federation wallet securing L-BTC.
- Bridge nodes were disabled and the Liquid sidechain has been paused.
- The team labeled the withdrawal an allegedly white-hat security move.
Liquid Network uses a federated model in which a group of functionaries controls the bitcoin reserves that back L-BTC tokens issued on the sidechain. The incident remains under investigation, and further updates from Liquid Network have not yet been released.