Liquid Network Siphoned of ~$320M via Elements Validation Vulnerability with Ransom Demand Rejected
CIE News ·
What Happened
Liquid suffered an unauthorized withdrawal of nearly 4,000 BTC (~$319M–$320M) from its federation reserve due to a vulnerability in the Elements validation cache. Attackers subsequently returned approximately 3,400 BTC but retained 598.5 BTC (over $46M) as a demanded bounty, which Liquid publicly rejected.
Why It Matters
Demonstrates a critical smart-contract/validation-layer vulnerability in the Elements validation cache leading to an unrecovered loss of 598.5 BTC and an active rejection of attacker ransom demands.