Liquid Network Addresses Security Breach After 4000 BTC Moved

Approximately 4,000 BTC (about 429.8 billion KRW) was moved from a federated wallet following exploitation of a vulnerability on the Liquid Network. The network halted transactions and began security measures. On July 7 (KST), the Liquid Network announced via X that 'white-hat hackers' had withdrawn around 4,000 BTC, disclosing a security incident. Blockstream and federation members attempted to contact the attacker through on-chain messages and deactivated bridge nodes. In a follow-up report released on July 9 (KST), the Liquid Network stated that an exploited vulnerability in open-source Elements software led to the creation of approximately 4,000 L-BTC without Bitcoin collateral. The report noted that around 3,400 BTC had been returned to the federated wallet, with additional security fixes and network restart preparations underway.