The Bitcoin Liquid sidechain is on ice after a major incident: so-called 'white hat' hackers managed to pull about $320 million worth of BTC—roughly 4,000 coins. Following the exploit, the network was paused.

What Happened

Roughly 4,000 BTC (estimated at $320 million) were drained from Liquid. In response, the project halted operations to prevent further risks and investigate what went down.

What We Know About the Funds

The group behind the withdrawal told Blockstream they plan to return most of the 4,000 BTC. The funds will be sent back after the underlying issue is fixed network-wide.

The Elements Vulnerability

The exploit was linked to a vulnerability in Elements. According to those involved, the BTC will be returned once the patch rolls out across the network and the hole is fully closed.