Liquid Network

Profile narrative

Liquid Network, also known as Liquid, is a blockchain network associated with Bitcoin that is used to move bitcoin-denominated value and digital assets more quickly than waiting for Bitcoin mainchain settlement. It is positioned as infrastructure for cryptocurrency exchanges, traders, market makers, and other users that need faster transfers and greater transaction privacy than the Bitcoin base layer provides. Its native asset is Liquid Bitcoin, commonly represented as L-BTC, which is pegged to bitcoin and can be moved on the Liquid chain. The network also supports the issuance and transfer of other digital assets, including tokenized representations of fiat or other assets, within its federated sidechain model. Within that model, transaction processing occurs on Liquid rather than directly on Bitcoin’s main chain.

A notable incident affecting the network was reported on 5 September 2026, when Liquid Network said a white hat hacker exploited a bug to withdraw thousands of bitcoins worth about $340 million from its wallet. The exploit prompted the platform to pause operations. The hacker stated they would return the funds if the vulnerability was fixed. Blockstream patched the flaw, after which roughly 3,400 of the approximately 4,000 stolen bitcoins were returned. About 600 bitcoins, valued at around $47 million at the time of reporting, remained under the hacker’s control. Operations remained halted while additional fixes and security improvements were implemented before any restart. The incident is a significant part of the available public record because it involved a large bitcoin-denominated loss, a conditional return of most funds, and an operational shutdown pending further security work.

Incidents

1 incident linked to this organisation.