Crypto exploits reach $322 million as Liquid Network incident dominates week

  • Liquid Network lost approximately 3,996 BTC after a SideSwap peg-out on September 6.
  • The week’s reported exploits totaled roughly $322 million, including about $320 million from Liquid.
  • Notional Finance, XRPH Wallet, Dream Health Chain and RedSonic Vault recorded smaller drains.

Publicly reported cryptocurrency exploits recorded from September 1 to September 7, 2026, totaled roughly $322 million, with more than 99% attributed to a September 6 incident on Blockstream’s Liquid Network. About 3,996 BTC left the Liquid Federation wallet after 4,000 L-BTC was sent to SideSwap’s peg-out service, producing a withdrawal valued at roughly $320 million at about $80,000 per bitcoin. Liquid said the Peg-out Authorization Key had not been compromised, while the network was paused and public bridge nodes were disabled. The federation’s reserve fell from about 4,200 BTC to approximately 197 BTC, and the coins had not been returned by 6:15 UTC on September 7. Independent analysis pointed to a range-proof cache flaw in Elements, the software behind Liquid’s confidential transactions, although a merged fix was reportedly absent from the tagged build running during the incident. The remaining confirmed drains involved Notional Finance on Ethereum, XRPH Wallet on the XRP Ledger, Dream Health Chain on BNB Chain and Reddio’s RedSonic Vault on Ethereum. Excluded from the weekly total were incidents that began earlier, application-level or unconfirmed losses, premature token emissions, malware using blockchains for command-and-control data, and other disclosures without a qualifying protocol drain. The weekly figure remains highly sensitive to whether most of the Liquid withdrawal is returned after patching, as suggested by on-chain messages, but no return had been recorded by the stated cutoff.

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