Crypto news report · source clearly identified
Liquid Network Paused After $320 Million LBTC Withdrawal
The Bitcoin sidechain has been halted, with exchanges stopping LBTC deposits and withdrawals while Blockstream seeks to contact those involved.
The Liquid Network, a Bitcoin sidechain operated by Blockstream, has been temporarily paused following a large withdrawal of LBTC valued at approximately $320 million. In response, cryptocurrency exchanges have suspended both deposits and withdrawals of LBTC.
Immediate Exchange Actions
Multiple exchanges announced that they are halting all LBTC transactions to protect users and mitigate further movement of the withdrawn funds.
Blockstream’s Response
Blockstream confirmed the pause and stated that it is actively attempting to reach the parties responsible for the withdrawal. The company emphasized its commitment to restoring normal operations once the situation is clarified.
Impact on the Bitcoin Ecosystem
The incident highlights the risks associated with sidechain operations and the importance of robust security measures. Users holding LBTC are advised to monitor announcements from their exchanges and Blockstream for updates.
Source & attribution
News Source
- Publisher
- The Block
- Original date
- September 6, 2026, 9:14 PM
- Original headline
- Liquid Network pauses after purported ‘white-hat’ hackers withdraw $320 million in bitcoin