Liquid Network's $320M Federation Hack Shakes Bitcoin Sidechain Trust
A catastrophic security breach struck the Liquid Network on Tuesday, with attackers draining 4,000 Bitcoin — valued at approximately $320 million — directly from the platform's federation wallet. The incident represents one of the most consequential thefts in the history of Bitcoin-adjacent infrastructure, and its implications reach far beyond a single protocol. It strikes at the architectural assumptions underpinning an entire generation of Bitcoin scaling solutions and raises urgent, uncomfort
🎯 Vulnerability: Web Security Vulnerability
💡 Defense Fix: Implement strict input validation, contextual output encoding, and enforce least-privilege authorization controls.