Crypto

Liquid Network: about 4,000 BTC withdrawn after a flaw, 3,400 returned

An Elements software flaw allowed unbacked LBTC and a withdrawal of about 4,000 BTC. Blockstream details fixes and staged recovery.

Conceptual illustration: Liquid Network: about 4,000 BTC withdrawn after a flaw, 3,400 returned
Conceptual illustration · SecurCheck

What is confirmed

Blockstream's technical assessment says the 6 September attack moved about 4,000 BTC out of reserves. The attacker returned 3,400 BTC the next day; about 602 BTC remained outstanding in the report.

Blockstream says it released Elements v23.3.4 and resumed block production on 9 September. Its 23 September report says peg-out operations remained suspended during the recovery described.

What it means

The weakness concerned proof validation on Liquid, a Bitcoin sidechain, not Bitcoin's main-chain protocol.

The initial USD 319 million estimate depends on the price at the time; it should not be described as a final loss because BTC was returned.

What to do

If you hold LBTC or use an exposed service, read official updates from Blockstream and your platform before acting.

Beware unsolicited recovery services contacting victims: no legitimate process requires your recovery words.

Check a suspicious sign

Use the related SecurCheck tool, then confirm important decisions with an official source.

Sources

  1. Blockstream — rapport technique du 23 septembre
  2. TRM Labs — analyse on-chain