# Bitcoin-Based Liquid Network Reports $320 Million Hack Massive withdrawal from Liquid Network's federation wallet raises security concerns. - **Source:** [Slashdot](https://brifing.si/source/0f34d58e-1ccd-45a6-ab82-2de4065dc7ad) - **Published:** 2026-09-07 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/1dab2952-9cb0-4924-87ce-f5003be7785a ## Liquid Network Hack Overview Liquid Network, a Bitcoin-based payments and settlement network, reported a significant security breach on Sunday. Approximately $320 million was withdrawn from its federation wallet by purported white-hat hackers. This incident has raised serious concerns about the security measures in place for cryptocurrency networks. ## Details of the Withdrawal The hackers managed to withdraw around 4,000 of the 4,200 bitcoin held in the Liquid Federation wallet. This massive withdrawal has left the network with a significantly reduced reserve, impacting its liquidity and operational capabilities. The network has acknowledged the breach and apologized for the inconvenience caused to its users. ## Impact on Liquid Wallets The hack has directly impacted Liquid wallets, which are integral to the network's operations. Users of these wallets may face disruptions and potential financial losses. The network has assured users that it is working to address the issue and enhance security measures to prevent future breaches. ## Response from Liquid Network In a post on X, Liquid Network expressed its regret for the inconvenience caused by the hack. The network is actively investigating the breach and collaborating with cybersecurity experts to identify the perpetrators and recover the stolen funds. This incident underscores the vulnerabilities in digital asset security. ## Security Concerns in Cryptocurrency The hack highlights the ongoing security challenges faced by cryptocurrency networks. Despite advancements in blockchain technology, breaches like this demonstrate the need for robust security protocols and continuous monitoring to protect digital assets from malicious actors. ## Role of White-Hat Hackers The hackers involved in this incident are described as 'white-hat hackers,' who typically expose vulnerabilities to improve security. However, their actions in this case have caused significant financial damage, raising questions about the ethics and consequences of such activities in the cryptocurrency space. ## Historical Context of Cryptocurrency Hacks This hack adds to a growing list of security breaches in the cryptocurrency industry. Previous incidents, such as the Mt. Gox and Coincheck hacks, have resulted in substantial financial losses and eroded trust in digital asset platforms. These events emphasize the importance of stringent security measures. ## Future Implications for Liquid Network The hack could have long-term implications for Liquid Network's reputation and user trust. The network must take decisive action to restore confidence, including implementing advanced security technologies and transparent communication with its users to prevent future incidents. ## Sources covering this story - https://yro.slashdot.org/story/26/09/07/0727220/bitcoin-based-liquid-network-says-320-million-withdrawn-in-hack?utm_source=rss1.0mainlinkanon&utm_medium=feed — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._