Bitcoin’s Liquid sidechain just got hit with some shady vibes when these claimed white-hat hackers yoinked about 4000 BTC worth $320 million right out of the federation wallet 🖤 Blockstream’s trying to reach out via on-chain signed msg.
Patch That Bug Before We Chat 🔥
In an update from Liquid they dropped that the funds came out using SideSwap’s PAK but the key wasn’t hacked and others are safe. Crypto exchanges already got the memo and paused or are pausing LBTC moves.
“Liquid wallets will be impacted, and we’re sorry for any inconvenience. Federation members are actively working on resolving this so we can restore normal network activity.”
Other assets like USDT stayed untouched while bridge nodes got disabled so no new txs can flow meaning the sidechain is basically paused for now 🌑 Other assets including real world stuff stayed safe too.
The discussion between @Blockstream and the white-hat hacker (WHH) regarding the ~4000 BTC from @Liquid_BTC is happening in public. It seems to be their preference over email. As it’s hard to follow the chain of messages in OP_RETURN, here’s a summary with links.
11:30 AM PDT -… https://t.co/IEXyFpBITx
— Samson Mow (@Excellion) September 7, 2026
The back and forth keeps rolling on chain where the hacker prefers public drops over email and even shared a Signal handle at @m671aw.70 👀 The chat kicked off at 11:30 AM PDT with the hacker saying they are whitehats and want on chain contact.
Unusual Moves From The Claimed Hero 🦇
Ledger’s CTO called out the vibe as off since real security folks don’t usually drain bridges then demand on chain chats 💀 The hacker later said they plan to send most back but only after the bug gets fixed at latest commit with nodes patched first 🌹 Blockstream replied thanks and around 3998.5 BTC still sits unmoved as of 9:12 PM.
Just another echo from the void by iconofsin.eth 💖
