The Liquid Network released an incident report stating that at 15:53:10 UTC on September 6, a vulnerability in the open-source Elements software related to range proof validation for Liquid node caching was exploited, resulting in the creation of approximately 4,000 LBTC without corresponding Bitcoin reserves. The attacker subsequently used the standard withdrawal mechanism via Liquid Alliance member SideSwap to exchange these LBTC for BTC, leading to the release and transfer of approximately 4,000 BTC to addresses controlled by the attacker.
Liquid Network vulnerability allows 4,000 LBTC to be redeemed as BTC
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Summary
A BTC update reveals that a vulnerability in Liquid Network’s Elements software was exploited on September 6 at 15:53:10 UTC. Attackers generated approximately 4,000 LBTC without adequate reserves and redeemed them through SideSwap, a member of the Liquid Federation. This resulted in approximately 4,000 BTC being released to the attacker’s address. The incident underscores the need for a network upgrade to prevent similar exploits in the future.
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