Purported white-hat hackers drained approximately 4,000 bitcoin — roughly $320 million — from the Liquid Network's federation wallet on Sunday, prompting the Bitcoin sidechain to pause all network activity as Blockstream scrambles to contact the attackers.
Purported white-hat hackers withdrew about 4,000 BTC from Blockstream's Liquid Network federation wallet on Sunday, leaving just 207 BTC in reserves, according to Bitcoin Magazine.bitcoinmagazine+1
The attackers exploited an inflation bug in the Elements software to mint fraudulent LBTC tokens, which the federation's multisig automatically redeemed for real Bitcoin, per The Block.theblock+1
Bridge nodes were disabled and exchanges told to halt LBTC trading; an on-chain message from the hackers read "we are whitehats. contact us on chain."theblock+1