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$320M in Bitcoin Withdrawn — Liquid Network Pauses Operations

VG Markets · 2026-09-07T05:59:57Z

$320M in Bitcoin Withdrawn — Liquid Network Pauses Operations

Bitcoin sidechain Liquid has paused operations after around 4,000 BTC, worth approximately $320 million, was withdrawn from its federation wallet.

The individuals behind the withdrawal claim to be “white-hat hackers”. According to reports, they told Blockstream they would return most of the Bitcoin after a vulnerability is fixed and the network is fully updated.

Liquid has disabled bridge nodes, preventing new transactions, while some exchanges have halted or are preparing to halt L-BTC deposits and withdrawals. The network said the cryptographic key used in the transactions was not compromised.

For BTC traders, the incident is a reminder that infrastructure and security risks can quickly affect crypto market sentiment. The key question now is whether the vulnerability can be resolved and the withdrawn funds returned as claimed.

The impact on Bitcoin’s broader market remains limited for now, but further developments could increase volatility across the crypto sector.

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