Hackers siphoned away $320 million from the Liquid Network blockchain, the latest in a string of high-profile cryptocurrency thefts.
In a post on social platform X Sunday (Sept. 6), the company said a group of “purported white-hat hackers” were behind the incidents. This is a reference to hackers who breach systems to highlight security flaws, although often with the owner’s consent. In some cases, these hackers ask for a fee to return the funds they move.
“Liquid wallets will be impacted, and we’re sorry for any inconvenience,” the Liquid Network said in the post, adding it has paused new transactions. “Federation members are actively working on resolving this so we can restore normal network activity.”
The hacker is communicating with network maintainers through Bitcoin transactions, saying the money will be returned after the vulnerability is repaired, CoinDesk reported Monday (Sept. 7).
“Please fix the bug first,” one message said, per the report. “The chain is under risk at latest commit right now. Make sure every node is patched. Then we will transfer the money back safely after confirming the fix.”
The hack is part of a series of incidents highlighting cybersecurity issues within the digital asset space, the report said. Last week, a hacker stole $6 million from the crypto lending platform Tectonic. In August, attackers exploited a flaw affecting older versions of firmware used by Coldcard, a Bitcoin hardware wallet made by Coinkite. Losses in that case have been estimated at between $115 million and $130 million.
“While these events may understandably shake consumer confidence, they highlight where critical infrastructure safeguards need to be strengthened, and why comprehensive security across the full stack is essential for operators,” said Ziqing Ang, head of policy in Asia-Pacific at TRM Labs, according to a Sunday Bloomberg report on the Liquid Network incident.
Meanwhile, a Financial Crimes Enforcement Network (FinCEN) analysis on suspected digital asset investment scams released last week demonstrated how banks may have an underused advantage in combatting authorized payment scams. They can potentially see a victim funding the fraud before they can show the ultimate payment is fraudulent.
“A retirement account is liquidated. Savings begin disappearing,” PYMNTS reported Friday (Sept. 4). “A home equity line is opened. Personal loans are requested. Money moves between previously quiet accounts. Then comes the wire to a crypto exchange or unfamiliar beneficiary. Viewed individually, each transaction can look legitimate because the customer authorized it. Viewed as a sequence, the customer can look like they are liquidating their financial life to fund a scam.”
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