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ActiveLiquid Security Incident
LIQUID NETWORK UPDATE: OPERATIONS RESUMED, RECOVERY ONGOING Status as of September 10, 2026, 10:00 UTC
Recovery Status
The Liquid Network has entered the next phase of its controlled resumption. As a precautionary measure, block production has resumed without transactions while the network is monitored to confirm full stabilization.
Blockstream confirms that the required functionary and bridge node updates have been successfully deployed. Functionary nodes are signing and validating blocks as intended.
Peg operations, including PAK-authorized peg-outs, remain suspended while work continues on the final recovery stage: restoring the BTC/LBTC reserve is in progress.
Reminder: Beware of Scams
There are reports of scammers attempting to exploit the situation through fraudulent update sites and messages. Please rely only on official Liquid Network and Blockstream channels. Never send funds or disclose private keys or seed phrases in response to unsolicited communications. Thank You
The Liquid Federation and Blockstream sincerely thank the broader Bitcoin community and security teams for their assistance and continued support during this challenging time.
Safely restoring full operations remains the highest priority.
Older messages (1)
We are aware of a security incident on Liquid. Purported white-hat hackers have withdrawn ~4,000 BTC (~$320 million) from the Liquid Federation wallet. The Blockstream team is working on contacting them on-chain with a signed message.
What we know so far is that the funds were withdrawn via the SideSwap PAK (Peg-out Authorization Key), but that key was not compromised, nor were any others.
Exchanges have been notified and have already paused (or will pause) LBTC deposits and withdrawals. Other Liquid assets such as USDT, DePix, and RWAs are unaffected by this security incident.
Bridge nodes have been temporarily disabled, so no new transactions can be submitted to the network. Effectively, the Liquid sidechain is paused until this issue is resolved.
Liquid wallets will be impacted, and we're sorry for any inconvenience. Federation members are actively working on resolving this so we can restore normal network activity.
Component status when posted
- Public Bridge Nodes Major Outage
Incident UUID b8b719f3-db70-4487-9cff-946e69509228