# Liquid Network Halts Following 4,000 BTC Withdrawal: Exchanges Suspend LBTC Transactions

> Liquid Network has been paused following the withdrawal of approximately 4,000 Bitcoin, while exchanges have suspended LBTC deposits and withdrawals. The Liquid Network has temporarily halted new transactions following the…

**Liquid Network has been paused following the withdrawal of approximately 4,000 Bitcoin, while exchanges have suspended LBTC deposits and withdrawals.**

The Liquid Network has temporarily halted new transactions following the developments on September 6. Actors whom the network’s technology provider, Blockstream, is attempting to contact reportedly withdrew assets worth approximately **4,000 BTC** from the federation wallet. The fate of the funds has not yet been finalized.

With this development, **Liquid sidechain operations** have effectively been suspended. Exchanges have also begun halting deposits and withdrawals for LBTC, which represents Bitcoin on the Liquid network. Consequently, LBTC users face disruptions in asset transfers until the network resumes operation.

### New Transactions Halted on Liquid Network

According to Liquid’s statement, **bridge nodes** have been temporarily disabled. Since these nodes are shut down, no new transactions can be submitted to the network. No date has been shared regarding when the network will be restarted.

In an on-chain message linked to the transaction cited as the source of the incident, the actors identified themselves as “white-hat.” This term describes ethical security researchers who claim to act in order to protect funds from malicious actors. However, **whether the funds will be returned** has not yet been announced.

Liquid stated that the incident does not affect other assets issued on the network, such as **USDT, DePix and real-world assets**. Nevertheless, the network halt directly impacts Liquid wallets and LBTC transfers.

LBTC, the counterpart of assets locked on the Bitcoin mainnet within Liquid, is held securely by federation members. While network members are working to return services to normal following the withdrawal, **how long the transaction disruption on Liquid will last** remains uncertain.