Liquid Network hack steals $320 million, highlighting crypto custody risks

Liquid Network hack

A breach of the Bitcoin‑linked Liquid Network resulted in the loss of roughly $320 million. The attack targeted the network’s wallet and custody systems, which hold Bitcoin for trading and settlement.

Key points

• Loss amount: about $320 million.
• Target: Liquid Network, a sidechain that makes Bitcoin more usable for traders.
• The hack exploited weaknesses in the layers that sit on top of the blockchain, such as wallets and custody arrangements.
• Incident adds to concerns about crypto’s security as the industry seeks mainstream adoption.

Confirmed facts

The Bloomberg report confirms that the hack occurred, that the stolen funds total $320 million, and that the breach involved the Liquid Network’s wallet and custody infrastructure. No other details, such as the identity of the attackers, have been verified.

Why it matters

Liquid is used to move large amounts of Bitcoin quickly for trading. The incident shows that even if the underlying blockchain is secure, the surrounding systems—wallets that store private keys and custodial services that manage assets—can be vulnerable. This risk is important for banks and institutional investors considering crypto exposure.

Sources

• Bloomberg Crypto