Abstract:
A Bitcoin blockchain used by several cryptocurrency exchanges has been hacked, resulting in losses of $320 million. It became the latest in a series of recent thefts that have shaken the outside world's confidence in the security of digital assets. Liquid Network, which develops a blockchain designed to speed up transactions, pointed out in an X post that its Liquid Federation wallet holds about 4,200 bitcoins, of which about 4,000 were stolen. Liquid said the person involved is "allegedly a white-hat hacker"; such hackers will transfer funds after discovering a vulnerability, with the intention of returning it later, usually for a fee.
Liquid Network said, "Liquid wallets will be affected and we apologize for any inconvenience caused," adding that all new transactions have been suspended. Members of the Liquid Federation are actively working to resolve the issue in order to restore normal network operations.
The hack is the latest in a string of recent incidents that have put the issue of cryptocurrency cybersecurity in the spotlight. Just last week, an attacker stole $6 million from a digital asset lending platform associated with Crypto.com. In August, the popular Bitcoin cold wallet Coldcard was hacked, which also raised questions about how to store this digital asset in the most secure way.
Liquid Network is developed by blockchain technology company Blockstream Corp. Founded in 2018; Blockstream’s co-founders include cryptographer turned Bitcoin supporter Adam Back. Blockstream said that Liquid Network is currently managed by a consortium of more than 80 exchanges, infrastructure companies and asset management companies. Liquid Network and Blockstream did not immediately respond to email requests for comment.
Comments