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$BTC remains steady around $79.7K–$80K, but the bigger story is happening one layer below.



Liquid Network reportedly saw around 4,000 BTC (~$320M) move from its federation wallet on Sept. 6 through SideSwap’s peg-out service.

The key point: this was not a stolen-key or multisig breach. The 11-of-15 federation and PAK reportedly remained intact.

The incident appears linked to an Elements bug that allegedly allowed exploit-created L-BTC to pass peg-out validation.

The “white hat” claim and promise to return funds remain unverified, while Ledger CTO Charles Guillemet has challenged that framing.

For traders, the lesson is simple: not every major drain means Bitcoin itself is compromised. This incident is reportedly isolated to Liquid, with BTC’s base layer unaffected.

Risk management matters. Sidechain and bridge risks deserve the same attention as price action.

#GateLaunchesTrenchesWith0GasFee
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NakedK
2 minutes ago
White hat promises repayment, but the CTO questions it—a classic crypto mystery drama. Let’s let the on-chain data speak.
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BasketWeaver
13 minutes ago
$320M was gone just like that, yet BTC's price didn't budge—the market really is becoming more mature.
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GasCatcher
23 minutes ago
The 11-of-15 multisig is still intact, indicating this was not a key compromise but a code-level logic vulnerability. Bugs like this are harder to prevent than theft, so more needs to be spent on audits.
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BridgeAnxiety
23 minutes ago
#GateLaunchesTrenchesWith0GasFee This hashtag feels really out of place here, but 0 gas is indeed appealing, and issues with the sidechain won't affect CEX user acquisition.
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MempoolSparrow
24 minutes ago
First Review
Liquid Network is inherently a federated sidechain with trust assumptions; exploiting a bug does not mean funds were stolen, but educating users remains a long-term challenge.
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