- BTC0%
BlockBeats News, September 9 - Liquid Network released an incident report this morning stating that on September 6, a vulnerability in its open-source Elements software was exploited, with attackers minting approximately 4,000 LBTC not backed by BTC reserves and exchanging them for about 4,000 BTC via SideSwap's Peg-out mechanism.
Following the incident, Liquid's reserves temporarily dropped from approximately 4,205 BTC to 197 BTC. Liquid stated that the event was not due to private key leakage or a breach of federation nodes. The attacker has since returned 3,400 BTC, with approximately 598.5 BTC still pending recovery.
Blockstream has completed the vulnerability fix, and the Liquid network remains suspended. Relevant teams are preparing the urgent Elements v23.3.4 release, with operations set to resume after security reviews and network state restoration are completed.
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