Liquid Network, a Bitcoin layer-2 solution, lost the equivalent of $320 million, approximately 4,000 BTC, after a transfer was made via the SideSwap Peg-out Authorization Key. The funds were consolidated into a Bitcoin address accompanied by a message claiming white hat status and inviting Liquid to contact them. Charles Guillemet, CTO of Ledger, questioned this label by drawing parallels to the Ronin and Euler hacks, noting that white hats typically do not operate in this manner. The network froze its bridge nodes and notified exchanges, which suspended L-BTC deposits and withdrawals. At time of press, the coins have not left the destination address, which asked whether returning most of the funds would be acceptable.
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