Thoughts on the Liquid whitehat incident:
Background:
- Liquid is a Bitcoin L2/sidechain, launched by Blockstream in 2018. 4,000 BTC from their bridge was taken by a whitehat yesterday (and then mostly returned).
- You can think of the Liquid network as running a fork of
If you’re following the Liquid 4,000 BTC hack/whitehat situation, this is the thread with the best info I’ve found.
Seems like an Elements bug was exploited to print coins that shouldn’t exist and then pegged out for real BTC. (Elements is a modified version of Bitcoin Core.)
Re today's Liquid incident: the ~4,000 BTC peg-out went through SideSwap's peg-out service on a customer order. As @Liquid_BTC confirmed, our PAK was not compromised. The L-BTC came from an Elements bug, not from any SideSwap system. Peg-in/out paused while Liquid is. Updates
