Bitcoin-based Liquid Network Says $320 Million Withdrawn in Hack

Reuters reports: Liquid Network, a Bitcoin-based payments and settlement network, said on Sunday that about $320 million was withdrawn from its federation wallet in a hack. "Purported white-hat hackers" withdrew around 4,000 of the 4,200 bitcoin held in its Liquid Federation wallet, Liquid Network said in a post on X.
"Liquid wallets will be impacted," their post concluded, adding "and we're sorry for any inconvenience."

EPIC RESPONSE

[ghinckley68]

"Liquid wallets will be impacted," their post concluded, adding "and we're sorry for any inconvenience."

Re:

[fleeped]

"We're sorry" https://www.youtube.com/watch?... [youtube.com]

Re:EPIC RESPONSE

[znrt]

if i understand correctly what is meant is that transactions are stopped while they figure the mess out, not the loss of funds. indeed a serious inconvenience but i'm guessing it would fall into "force majeure" category.

Re:

[Anonymous Coward]

"force manure"

Re: EPIC RESPONSE

[jddj]

"We apologize for the incontinence"

we're sorry for any inconvenience

[nixer]

This had me rolling...

Store of value

[GeekWithAKnife]

..mthebissue with being a store of value is that even if it's so in principle it also needs to be secure in fact. Don't hear a lot of stories about million in gold being stolen...

Wrong, gold is stolen all the time

[JcMorin]

Gold has been one of the most heavily targeted assets for theft throughout human history. I'm not sure how you got the idea that gold is not stolen.

Electronic transfers of gold can be reversed

[drnb]

Gold has been one of the most heavily targeted assets for theft throughout human history. I'm not sure how you got the idea that gold is not stolen.

I think he means by hacking. Gold cannot be transferred electronically due to its physical nature. The named owner of a particular amount of gold can be changed electronically, but that can be fixed if done in error or by hacking. Crypto transfers cannot be undone, by design.

Re:

[tlhIngan]

Gold cannot be transferred electronically due to its physical nature

And it's extremely inconvenient to transfer it physically. It's so inconvenient that when the Dutch central bank decided to transfer its holdings from the US to UK, it did it electronically.

That is, it sold its gold holdings in the US and then bought them back in London. So no physical gold moved around. Presumably whoever bought the gold in the US wants it there, but physically moving it is now a Them problem.

For small amounts, gold is tra

Re:

[edi_guy]

Same thing with other commodities like oil. Mostly traded back and forth by via futures contracts and such at CME, etc. But at some point, someone does actually want the physical oil (or gold) and that means it has to exist somewhere. For purposes of standardized, uniform trading it makes sense to choose one location and for the delicious West Texas Intermediate (WTI) crude that place is Cushing, Oklahoma.

https://en.wikipedia.org/wiki/... [wikipedia.org]

Stocks have been drawn down as people sold during the first part o

Re:

[pjt33]

The Villena treasure (9kg of gold stolen from a museum in Spain about two weeks ago). And there was a diamond necklace worth about $4m stolen from a Viennese museum shortly afterwards.

Re:

[pla]

Ex-CIA official charged with stealing millions of dollars in gold bars from the federal government [apnews.com]
More than $1 million in gold stolen from Pennsylvania couple, police say [msn.com]
Armed thieves steal gold and cash during Port Moresby hold-up in one of PNG's biggest robberies [abc.net.au]
Gold heist ringleader pleads guilty to theft of $22M in gold and cash from Toronto's Pearson airport [nationalpost.com]
Iraq seizes mounds of gold and millions in cash from officials in corruption crackdown [cbsnews.com]

Those are all stories from the past year. That sai

Re:

[Valgrus Thunderaxe]

Don't hear a lot of stories about million in gold being stolen...

Really? I have.

Stolen gold is more recoverable

[drnb]

Don't hear a lot of stories about million in gold being stolen... Really? I have.

Then you probably also heard the stories of gold being recovered, found, etc. Also stories of accidental/erroneous transfers, and then the reversal of these transfers.

Not so much for crypto. At best a gov't hacks into a thief's infrastructure. Want to get your stolen goods back, please identify yourself, provide proof of ownership, pay your taxes, etc. Many crypto owners declined to do so when the US gov't seized the servers of the BTC-e exchange, netting 60% of the exchanges crypto.

More importantly,

Letting someone else hold your crypto ...

[drnb]

Bitcoin is not a store of value. Its utility in commerce or money transfers is very short term. Someone buys crypto with fiat currency, someone transfers crypto, recipient receives crypto, recipient immediately sells crypto for fiat. Fluctuations for such a short time frame is minimal.

Someone who holds crypto is doing high risk speculative investment.

Letting someone else hold your crypto, using a 3rd party online wallet, has nothing to do with store of value. One of the main points of crypto is that t

Re:

[beep999]

These exchanges need to be regulated, and behave, like the banks that they are. You don't hear about a major bank getting hacked and having millions stolen. Why? Because they are held to incredibly high standards for IT security and redundancy, with complex multi-layer security systems, hardware tokens, and isolated core ledgers.

"Purported white-hat hackers"

[T34L]

IDK about whoever pwned them in this case, but I feel like my fashion choices could get hella flexible if they were in the way of a potential $320M. That's enough to disappear real good.

Re:

[CEC-P]

Oh, you also agree that it's odd that they haven't given it back yet despite being white hat hackers? The only reason that comes to mind is to wait until they disclose it publicly so they can't brush it under the rug or to negotiate if they can keep like 100k worth or 1 mil worth or what as a fee.

Invest in a scam

[commodore73]

Invest in a scam, get scammed. Big surprise.

Re:

[Valgrus Thunderaxe]

If you didn't want to get raped, you shouldn't have dressed like that. Big surprise.

Re: Invest in a scam

[commodore73]

I see that as an attempt at false equivalence.

HAHAHAHAHAHA

[rootb]

Is this the garbage Blockstream chose for bitcoiners over scaling on-chain?

Re: They're in on it

[Clausewitz4.0]

Maybe blacks turned whites for 10% - no police, no courts of justice, only a contract signed. Happened in the past.

The rehypothecation / leverage problem :o

[Mirnotoriety]

Using Bitcoin as collateral on loans to be used as collateral on further loans /s

Capital gains reforms needed

[jacks smirking reven]

People can fun with all their little tokens or trading cards or whatever but as soon as anyone wants to turn those into USD then there's gonna be some taxes... high taxes. I am talking like 70%+. Frankly, to me, someone getting those coins via "theft" isn't that far off from whatever we call general crypto trading with it's rug pulls and scams galore. They want to decouple from financial regulations then they can decouple from judicial ones as well, figure out your own justice there, just pay your taxes.

Re:

[jacks smirking reven]

only what this Liquid network feels it is worth.

Nah, they feel it's worth whatever they can get in USD for it. If they went to court over this they would absolutely declare a value based on USD exchange rates. If crypto wasn't worth actual currency nobody would give a shit about it.

Also I have zero belief these people have any noble goals about the destroying the system. If that was the case they would announce it and do something public-ally with the funds. There's no point otherwise.

With taxing crypto we can just safely assume all of it came from i

Better then gold they said

[wakeboarder]

More secure than cash they said. Good thing I've invested in BTC, best investment ever!

Re:

[gweihir]

Which tells us that "they said" is not a reliable source of information. Obviously, the stupid-greedy will not be able to understand that, but still.

Re:

[wakeboarder]

It was more of a sarcasm thing.

Re:

[gweihir]

I get that. And it was on point.

Crapto remains crapto

[gweihir]

What else is new? There is a reason real currency and real banks are secured on a massively better level than crapto. But the stupid never learn.

Ugh

[paul_engr]

Why the fuck are these nitwits still getting any air? Crypto is a fucking scam.

if fiat worked

[diffract]

without a money printer that doesn't stop, people wouldn't have to gamble their money on stocks and crypto to beat inflation.

remember Bitcoin wallets couldn't be hacked

[bsdetector101]

That was what they said when it 1st came out and untraceable......all lies.

And nothing of actual value was lost...

[Inglix the Mad]

That's all that needs to be said.