Liquid Network loses 3,996 Bitcoin in liquidity shock: White-hat message offers hope
defi
Liquid Network experienced a liquidity shock when 3,996 BTC exited the sidechain. The actor left a "white‑hat" message indicating the move was intended to secure the coins and may lead to their return, offering a possible path to recovery. The incident reduces Liquid's near‑term off‑chain liquidity, risks disrupting exchange settlement and market‑making that rely on it, and highlights custodial/governance vulnerabilities in federated sidechains that could push users and liquidity back onto Bitcoin's main chain.
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