Update to incident: ~4,000 BTC withdrawn from Liquid Federation wallet; Liquid network suspended
Liquid transactions are going through again; peg operations remain suspended for now
According to Aqua Wallet, the Liquid network has resumed processing transactions. Liquid→Liquid transfers are confirming, and USDT and DePix are working again. Peg-ins and peg-outs remain suspended while full 1:1 backing of L-BTC is restored. Aqua separately warns against selling L-BTC at a discount in manual P2P swaps, because work to restore the backing is ongoing.
Do not sell or exchange L-BTC at a discount in over-the-counter P2P trades while peg operations are suspended. Wait for the official announcement that peg-ins and peg-outs have resumed. Do not install “updates” from third-party sources or disclose your seed phrase to anyone.
Source: x.com - AquaBitcoin
Incident history
- 06 Sept~4,000 BTC withdrawn from Liquid Federation wallet; Liquid network suspended
- 07 SeptAbout 4,000 BTC withdrawn without authorization from Liquid Federation wallet; some already returned
- 08 SeptBlockstream deploys updated software and prepares a coordinated restart of the Liquid network
- 08 SeptBlockstream identifies cause of Liquid incident: range proof vulnerability in the Elements protocol
- 08 SeptBlockstream: Liquid network restart expected in 4–5 days
- 09 SeptFollowing the Liquid incident, a wave of phishing impersonating Blockstream and Liquid
- 10 SeptLiquid produces blocks again, but without transactions for now; peg operations remain suspended
- 10 SeptLiquid transactions are going through again; peg operations remain suspended for now
- 10 SeptLiquid resumes transactions, peg-outs remain disabled; node operators urged to update Elements immediately