Blockstream's Liquid Network halts new transactions after "purported white-hat hackers" withdrew ~4,000 of the 4,200 bitcoin held in its federation wallet (Omkar Godbole/CoinDesk)

Blockstream’s Liquid Network stopped processing new transactions after a group claiming to be white-hat hackers withdrew roughly 4,000 of the 4,200 BTC stored in the federation wallet, effectively emptying the fund that underpins the settlement network used by cryptocurrency exchanges. The incident left the network inoperable and raised concerns over the security of the multi-signature federation that secures Liquid’s assets.