New Delhi, Sept. 7 -- The Liquid Network has suffered a significant security breach, with approximately 4,000 Bitcoin reportedly withdrawn from its Federation wallet. The stolen Bitcoin is valued at around $320 million, raising concerns across the cryptocurrency industry.

In a post on X, AQUA Wallet said the withdrawals were carried out using SideSwap's Peg-out Authorisation Key (PAK). The wallet provider said the PAK itself was not hacked and there was no indication that any other keys had been compromised. The Blockstream team has since attempted to contact the parties behind the withdrawals through a signed on-chain message.

According to AQUA Wallet, Liquid Federation members have temporarily disabled bridge nodes. This has prevented...