Crypto News | Liquid Network Pauses After About 4,000 BTC Withdrawal

On September 6, Liquid Network reported a security incident involving the withdrawal of about 4,000 BTC from a federation wallet. The parties responsible described themselves as “white hats,” or security researchers, but the incident is still developing and should not be interpreted beyond confirmed facts.

What happened

According to Liquid, the funds were withdrawn through the SideSwap PAK. The network said the PAK key itself did not appear to be compromised and that the exact technical cause had not yet been publicly explained. The sidechain was paused, while several exchanges suspended LBTC deposits and withdrawals.

Why it matters

Liquid is a Bitcoin sidechain used for transfers and digital-asset issuance. The episode is a reminder that crypto risk is not only about price. Infrastructure, bridges, custody and technical components can also introduce risk.

The Crypto Mentor point

A movement of funds is not automatically proof of a confirmed theft. Until definitive clarification is available, follow official channels and be skeptical of private messages promising recovery, refunds or assistance. No legitimate operator needs your seed phrase or private keys.

Verified source: The Block

This article is educational information, not financial advice.