Hackers exploited a Liquid Network software bug to exchange valueless tokens for $320 million in bitcoin. Here’s how the exploit worked.

Someone drained most of Liquid Network’s bitcoin reserve, then wrote “contact us on chain.” Blockstream replied on-chain. The coins have not moved since.

The Bitcoin sidechain has been paused, with exchanges suspending LBTC deposits and withdrawals as Blockstream works to contact those responsible.