Hackers have withdrawn approximately 4,000 BTC, valued at around $320 million, from the Liquid Federation wallet. The Blockstream team is actively attempting to contact the perpetrators on-chain using a signed message. The withdrawal was executed via the Side Swap PAK (Peg-out Authorization Key), though officials confirm this key was not compromised, nor were any others.

In response, exchanges have paused LBTC deposits and withdrawals. Bridge nodes have been temporarily disabled, effectively pausing the Liquid sidechain until the issue is resolved. Federation members are working to restore normal network activity.

Other Liquid assets, including USDT, De Pix, and RWAs, remain unaffected by the incident. Users can monitor the situation via mempool.space/address/bc1qdl...