Liquid is a cryptocurrency exchange that allows both novices and pros to exchange their crypto for other forms of currency. Users can also buy and sell crypto to other users of the platform.
Liquid suffered a data breach that resulted in a loss of $97 million. The company requested that its users no longer add cryptocurrency to their Liquid wallets in the attack's immediate aftermath.
Liquid announced the breach in a statement, noting that it identified an unauthorized entrant into cryptocurrency wallets managed by the company. The unidentified party moved more than $90 million of crypto out of the company's wallets. However, about $16 million of the assets were disabled.
Liquid did not provide many details as to how the attack occurred. The company has been tight-lipped about how digital crypto wallets were accessed and ransacked to prevent others from replicating the strategy.
This breach occurred on November 13, 2020.
Nearly $100 million of crypto was stolen from Liquid digital wallets, hurting the company's customers as well as the business. Sixty-nine unique crypto assets were stolen and transmitted to defi venues for swapping or alternative crypto exchanges. The only silver lining to the attack is that hackers did not steal those customer assets positioned within the company's Liquid Earn program.
The breach impacted Liquid customer wallets but for those on Liquid Earn. The financial loss from the attack totaled more than $90 million. Liquid failed to identify the hacker though the company noted the miscreant relied on specific wallets to pluck the funds, ultimately stealing many valuable crypto coins. The moral of the story of the Liquid hack is that every business and computer owner should make the relatively minor investment necessary to fortify their digital defenses.