Liquid Network Pauses After Reported Withdrawal of Nearly 4,000 Bitcoin

Liquid Network paused operations after nearly 4,000 bitcoin were withdrawn in a security incident, The Block reported on September 6, 2026, citing a network statement. The withdrawn bitcoin was valued at approximately $320 million at the time.

The network temporarily disabled bridge nodes. Exchanges had suspended L-BTC deposits and withdrawals or were preparing to do so, according to the network statement cited in the report. Liquid’s bitcoin reserves had stood at roughly 4,200 BTC before the withdrawal.

The report described those responsible as purported white-hat hackers.

The statement cited in the report said other assets issued on Liquid, including USDT and DePix, were not affected by the withdrawal. Wallet access and transfers could nevertheless be interrupted by the network pause.

BTC Times also reported the suspension, distinguishing the Liquid incident from the operation of Bitcoin’s base network.

Liquid is a Bitcoin sidechain used for transfers and asset issuance, according to Blockstream’s description of the network. L-BTC is the sidechain representation of bitcoin; the bridge and its backing arrangements are separate from Bitcoin’s own transaction processing.

Liquid Network pause and Bitcoin transfers.

Note: This article is for news reporting purposes only and does not constitute investment advice.