Code & Chain · Signal Desk

White Hat Hacker Extracts $320M in Bitcoin from Liquid Network, Demands Vulnerability Fix Before Return

2026-09-08CryptoFeatureLast updated: 8 Sept 2026, 7:36 am
Original sourceCryptoslateAdditional: HTX

Summary

A white hat hacker exploited an Elements software vulnerability in the Liquid Network to forge L-BTC tokens, swapping out ~4,000 BTC (~$320M) via SideSwap. Blockstream confirmed federation keys were not compromised; only the issuance mechanism was affected. The attacker claims to be a white hat, of…

Key points

  • Learn about cross-chain bridge security vulnerabilities and white hat negotiation/repair processes in crypto.
  • This shows issuance mechanisms of cross-chain bridges can be exploited, causing hundreds of millions in losses, underscoring bridge security importance.
  • May prompt more projects to audit token issuance logic and increase regulatory scrutiny of cross-chain bridges.
Crypto Weekly

Editorial note

This page is Code & Chain's editorial summary of public sources. It may be prepared with AI assistance and published through an automated workflow. Refer to the original sources; this content is not investment, legal, or tax advice.