White‑hat hackers take 4,000 BTC from Liquid; Bitcoin ETFs record strongest three‑week inflows of 2026
Liquid sidechain breach
Approximately 4,000 Bitcoin (about $319 million) were moved from the Liquid Network, a Bitcoin sidechain, in an incident that the perpetrators described as a “white‑hat” operation. An unverified on‑chain message claimed responsibility and asked to be contacted.
Liquid, operated by Blockstream, has paused its bridge nodes and asked exchanges to stop LBTC deposits and withdrawals while it investigates. The federation wallet balance fell from roughly 4,200 BTC to 207.275 BTC.
Liquid’s official statement said the funds were withdrawn via the SideSwap PAK (Peg‑out Authorization Key) and that the key itself was not compromised. The company also reported a bug in the Elements software that created the L‑BTC in the affected transaction.
ETF inflow surge
U.S. spot Bitcoin exchange‑traded funds (ETFs) recorded their strongest three‑week inflow period of 2026, with a total net addition of $3.8 billion. The most recent week added $986.9 million, bringing the funds’ total net assets to $101.3 billion.
On Thursday, the ETFs saw $730.9 million in net inflows, the highest weekly amount since mid‑January.
Key numbers
- 4,000 BTC (~$319 M) moved from Liquid.
- Liquid federation wallet now holds 207.275 BTC.
- Bitcoin ETF net inflows over three weeks: $3.8 B.
- Latest weekly ETF inflow: $986.9 M.
- Total ETF assets: $101.3 B.
What is confirmed
- The Liquid Network’s federation wallet balance dropped as reported.
- Liquid has paused bridge nodes and asked exchanges to halt LBTC activity.
- ETF inflow data comes from SoSoSoValue and matches the reported figures.
What remains unclear
- The identity and motives of the alleged “white‑hat” actors are not verified.
- Whether the Elements software bug fully explains the loss is still under investigation.
Why it matters
The loss of a large amount of Bitcoin from a sidechain raises questions about the security of multi‑signature and whitelist mechanisms used by Liquid. The strong ETF inflows suggest growing investor interest in regulated Bitcoin exposure, even as the price hovers around $80,000.
