Crypto hacks are becoming more frequent; 250 incidents have already occurred in 2569, resulting in losses of $1.4 billion.

The $320 million Liquid Network hack exposed vulnerabilities in the crypto industry, not just in the blockchain itself, but also in the interconnected bridge and cross-chain systems.

On September 8, 2026, at 1:20 PM, Bloomberg News reported that the Liquid Network hack, linked to Bitcoin and valued at approximately $320 million, became another blow to the credibility of the crypto industry at a time when operators are trying to convince banks and institutional investors that digital assets can become part of the mainstream financial infrastructure.

The damage from this incident is not limited to the Bitcoin that was withdrawn, as Liquid was created to enhance Bitcoin's usefulness in trading and settlement. This event underscores the risks inherent in the blockchain infrastructure, including digital wallets, custodial systems, and transaction infrastructure—systems that users rely on in practice.

Nickhil Ragueira, CEO of Predicate, a blockchain-based compliance infrastructure provider, stated that the ongoing attacks underscore the fact that decentralized finance (DeFi) is not yet ready for widespread adoption by fintech companies and financial institutions globally. While blockchain has significant potential for financial settlements, DeFi fails to meet the fundamental institutional standards required by traditional financial markets.

The ongoing hacking incidents have also raised questions about the concept of decentralization, once considered one of cryptocurrencies' greatest strengths, potentially turning it into a weakness. Without a central authority responsible for correcting errors, protecting assets, or mitigating damages, users are forced to rely on a distributed infrastructure, which remains a target for malicious actors.

Data from DefiLlama indicates that since the beginning of 2569, hackers have stolen approximately $1.4 billion in cryptocurrency assets from 250 attacks. This compares to $2.7 billion in losses from 146 attacks in 2568, reflecting a significant increase in the number of incidents despite the overall loss being lower this year.

Of particular note is that this year there have been 26 attacks, or more than 10%, targeting Bridge and cross-chain infrastructure —the components that connect users to move tokens or data between blockchains. This is a significant increase from 2568, when DefiLlama detected only 3 attacks in this sector.

Cross-chain systems are a crucial component of DeFi, enabling the automated movement and transformation of various digital asset types. However, the sheer number of existing cross-chain projects, coupled with limited cybersecurity monitoring capabilities, is increasing the system's risks.

This week's Liquid Network hack is just the latest in a series of attacks on decentralized platforms this year. Previously, Kelp DAO and Drift Protocol were also attacked, with the two cases causing a combined damage of approximately $588 million.

Liquid stated that approximately 4,000 BTC, or about 95% of the Bitcoin stored in the network's main wallets, were stolen by a group known as "white-hat hackers," who typically exploit vulnerabilities in systems before returning the stolen funds in exchange for compensation.

In this case, the hackers returned approximately 3,400 BTC but kept assets worth around $47 million, according to Alex Thorne, head of research at Galaxy Digital.

Liquid also stated that the transaction authorization keys for the clearing platform were not hacked, further highlighting the crucial point that even if the underlying blockchain remains functional, the systems and infrastructure built around it can still fail.

These incidents are not isolated events. Last week, attackers were able to withdraw $6 million worth of assets from a digital asset lending platform linked to Crypto.com. Meanwhile, in August, an offline attack on a Coldcard Bitcoin wallet, previously considered a secure way to store Bitcoin, has raised new questions about the most secure methods for storing digital assets.

Zhiching Ang, Head of Asia Pacific Policy at TRM Labs , stated that these incidents demonstrate that the vulnerability does not lie in the underlying consensus mechanism of the blockchain, but rather in the operational layer and infrastructure built around the system.

This issue is becoming an increasingly challenging problem as traditional financial institutions move into the cryptocurrency market. For example, banks considering tokenizing deposits or securities cannot assess only the security of the blockchain, but must also have confidence in the asset custody system, smart contracts, clearing mechanisms, and the authorities responsible for controlling the assets.

Raguvira stated that a single vulnerability in the infrastructure can impact multiple businesses that rely on the system. For example, trading platforms using Bridge that have been hacked, token wallets affected, or market makers providing liquidity could all face damage even if their own systems have never been compromised.

Although most of the Bitcoins taken from Liquid have been returned, experts warn that this doesn't change the nature of the risk, as similar attacks could be carried out by malicious groups with no intention of returning the assets.

Anerin Flynn, CEO of FailSafe, a cybersecurity technology company, stated that the fact that millions of dollars can be lost from systems due to code flaws reflects that software vulnerabilities remain a long-term risk to cryptocurrency infrastructure.

This situation leads to a significant paradox in the crypto industry: cryptocurrencies were created to reduce the need to trust financial intermediaries, but as the industry seeks to grow into institutional markets, its future increasingly depends on trust in the infrastructure built around blockchain.

If confidence declines, the consequences could include stricter security requirements, higher insurance and reserve needs, diversification across multiple custodians and clearinghouse networks, or a slower entry of institutional investors into the crypto market.

Over the years, the crypto industry has promoted blockchain as a potentially more efficient financial infrastructure. However, the recent Liquid Network hack serves as a reminder that the reliability of a blockchain may only be as strong as the infrastructure that supports and moves assets on it.

Reference: www.bloomberg.com

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