🚨 Liquid Network experienced a security incident involving approximately 4,000 BTC (~$320M), and the sidechain has been paused.

The party behind the transfer identified themselves as “whitehats” and said they intend to return most of the funds once the vulnerability is patched.
Liquid stated that the relevant PAK keys were not compromised, while the exact exploit mechanism remains under investigation.

💡 This incident is another reminder:

1️⃣Native Asset ≠ Pegged Asset
Once BTC enters Liquid and becomes LBTC, its security also depends on the peg, federation, and node infrastructure.

2️⃣ Key Security ≠ Infrastructure Security
Key security is only one layer of the overall security model.

🔐 Self-custody protects your control.
It does not eliminate infrastructure risk.

#LiquidNetwork #Bitcoin #DigitalShield #CryptoSecurity #Web3Security