Bitcoin sidechain Liquid has paused operations after actors described as purported “white hats” withdrew 4,000 BTC, worth about $320 million, according to Cointelegraph. The withdrawals were linked to an Elements vulnerability affecting the network. The actors told Blockstream that they would return most of the bitcoin once the vulnerability has been patched across Liquid. The incident places attention on the security of the sidechain and the status of funds removed during the pause. No further details on the vulnerability, the timing of a patch, or the amount to be returned were provided in the source material. Liquid is a Bitcoin sidechain, while Blockstream is associated with the network. The development was reported on September 7, 2026, and may be relevant to market participants tracking BTC-related infrastructure and network security.
