A blockchain platform widely used by cryptocurrency exchanges to transfer bitcoin has suffered a major security breach resulting in the theft of approximately $320 million worth of bitcoin. The Liquid Network operator announced the incident on September 9, 2026, revealing that around 4,000 of the 4,200 bitcoins stored in one of its wallets were taken by hackers.
Liquid Network described the attackers as "white-hat hackers," individuals who identify and exploit security vulnerabilities but often return the stolen funds, sometimes in exchange for a fee. Following the breach, the platform paused all new transactions to contain the damage and said its federation members are working to restore normal network functions as quickly as possible.
According to Alex Thorn, head of research at Galaxy Digital Inc., the hackers have returned approximately 3,400 bitcoins, leaving roughly $47 million retained. The motives behind the partial return remain unclear.
This incident marks the latest in a series of high-profile attacks targeting the cryptocurrency sector, raising concerns about the security of digital asset infrastructure. Just the previous week, an exploit drained $6 million from a Crypto.com-affiliated digital asset lending service. In August, a similar breach involving the popular offline bitcoin wallet Coldcard drew scrutiny over the safety of hardware storage solutions.
Experts view these breaches as a call to reinforce security measures across the cryptocurrency ecosystem. Ziqing Ang, head of policy for Asia-Pacific at TRM Labs, emphasized the importance of comprehensive protection, noting that while such events may undermine consumer confidence, they also underscore the need to strengthen critical infrastructure safeguards.
The Liquid Network, established in 2018 by Blockstream Corp—a blockchain technology firm co-founded by cryptographer and bitcoin advocate Adam Back—serves as a sidechain platform facilitating faster and more secure bitcoin transactions. The recent hack highlights ongoing vulnerabilities in systems designed to support the growing digital asset economy.