Here is the latest update on the Liquid Network, which has been paused following a reported $320 million Bitcoin withdrawal that appears to have been carried out by a white-hat hacker.
Frequently Asked Questions
Here is a list of FAQs regarding the pause of the Liquid Network following the alleged 320 million whitehat Bitcoin withdrawal
General Beginner Questions
Q What is the Liquid Network
A Its a sidechain built on top of Bitcoin It allows people to move Bitcoin onto a separate network to make transactions faster more private and to enable trading of other digital assets without clogging up the main Bitcoin blockchain
Q What does it mean that the Liquid Network is paused
A It means the network has temporarily stopped processing new transactions During this time you cannot send or receive assets on Liquid The main Bitcoin network is unaffected and operating normally
Q I heard there was a theft of 320 million Did hackers steal my Bitcoin
A No it wasnt a hack The company behind Liquid says this was a whitehat operation This means the people who controlled the funds deliberately moved a large amount of Bitcoin to a secure address to prevent it from being stolen by a potential vulnerability It was a protective measure not a robbery
Q What is a whitehat operation
A In cybersecurity a whitehat is a good guy They use their skills to find and fix security holes before the blackhats can exploit them In this case it means the network operators moved the money themselves to keep it safe
Q Is my money safe on Liquid
A According to the official statements your funds are safe The Bitcoin that was moved was done so to protect it The network is paused to fix the underlying issue but the assets are not lost
Q When will the Liquid Network be back online
A There is no set date yet The network will resume once the security issue is fully investigated patched and the system is safely restarted Its better to wait for an official announcement than to guess
Technical Advanced Questions
Q Why was a massive withdrawal necessary to fix a bug