Million Bitcoin-linked hack exposes cracks in crypto's plumbing

A $320 million hack linked to Bitcoin’s Liquid Network has highlighted weaknesses in the systems around blockchain use, not just the blockchain itself. Liquid was built to improve Bitcoin trading and settlement, but the incident points to risks in custody arrangements and transaction infrastructure. The event feeds criticism that DeFi still isn’t ready for institutional-grade expectations. DefiLlama data show hackers took about $1.4 billion across 250 attacks in 2026 so far, vs. $2.7 billion across 146 attacks in 2025, with 26 of this year’s assaults—over 10%—targeting bridges and cross-chain infrastructure. In Liquid’s case, about 4,000 BTC (around 95% of the main wallet) were drained; the attackers described themselves as “white hats” and returned 3,400 BTC.