lbtc

🚨 Liquid Network Pauses Operations After $340M Bitcoin Exploit! ₿🔴

Liquid Network has reportedly paused operations after an attacker exploited a cache vulnerability, creating around 4,000 unbacked L-BTC.

💰 The L-BTC was reportedly redeemed for real BTC, totaling roughly $340M.

⚠️ Important: This was an exploit involving the Liquid sidechain and its BTC/L-BTC peg, not a hack of Bitcoin’s base layer.

🔐 Key takeaway: The incident highlights the security risks around sidechains, bridges and redemption mechanisms.

#LiquidNetwork #Bitcoin #CryptoSecurity #LBTC

Liquid resumes transfers; LBTC cross-chain redemption still not open

LBTC’s in-chain transfers have resumed, but you still can’t treat it as restored BTC redemption. For anyone who needs to move funds back to the Bitcoin mainnet, the most important question now isn’t the four words “network restart,” but when the cross-chain redemption channel will truly be opened.

On September 10, Liquid first announced a resumption of block production without “trading.” Then the latest announcement clarified that in-chain trading has been restored, but cross-chain outbound BTC is still closed. Today, when you read a block explorer, you can also see that transactions are already included in new blocks. If you only look at the previous announcement, you would carry forward the old status that “trading is still paused” into today.

The difference is this: moving LBTC from one Liquid address to another transfers in-chain assets. Redeeming BTC back to the Bitcoin mainnet through the federation channel requires a separate set of actions to release reserves. The former being restored does not automatically open the latter, and it doesn’t guarantee that exchanges synchronize their deposits/withdrawals at the same time.

On September 8, what we followed up on was partial BTC return. Now we should update the progress to “in-chain trading restored,” and stop broadly saying “preparing to restart.” But the judgment about whether redemption is available must remain unchanged for now. Repairing and restoring operations is real progress—shouldn’t be ignored—yet it also shouldn’t be expanded into a claim that funds can already move in and out freely.

According to the latest official announcement, ordinary users currently do not need to take any action; only those running a Liquid node need to update to Elements v23.3.4. Don’t use so-called “unlock” websites to transfer assets or submit seed phrases because of an “urgent recovery” email.

Over the next 24–48 hours, I will verify the cross-chain outbound resumption announcements, the reserve restoration notes, and actual redemption records. If these pieces of evidence mutually confirm, I will further lower redemption risk. If redemption still can’t be completed after opening is announced, or if a new abnormal outflow appears, I will raise the alert level. If you need mainnet BTC funds in the short term, you should avoid adding new deposits into Liquid until the channel’s usability is confirmed.

#Liquid #LBTC #资产安全

📰 Liquid Network Security Incident Updated Overnight: An Elements software range proof verification cache vulnerability was exploited. The attacker minted about 4,000 LBTC tokens without BTC reserves backing them, and then swapped them for BTC via SideSwap.

🔥 The most eye-catching part this time is the changes in reserves. Liquid’s BTC reserves dropped from around 4,205 to just 197 at one point—this gap is no small matter. The network is currently paused, and the official team is urgently rolling out a fix for Elements v23.3.4.

The attacker claims to be a white-hat; they have already returned 3,400 BTC, but about 598.5 BTC still has not been recovered. To be honest, getting most of the funds back is a temporary sigh of relief—but the incident is far from over.

💡 The current questions are very straightforward: Can the remaining BTC be recovered in full? And after the vulnerability is patched, how will the network confirm that it’s safe to resume operations? Until these two things are in place, it’s normal for users to feel uneasy.

🤔 If you still have assets in Liquid, will you wait for the official fix and the network to come back online, or will you withdraw first once your funds become movable?

#LiquidNetwork #LBTC #BTC #Web3 security

📰 This security incident on the Liquid Network is pretty alarming in scale: about 4,000 BTC were taken from the Federation wallet by a “white-hat” hacker, accounting for roughly 95% of Liquid’s reported Bitcoin reserves before the incident. At the time, reserves were about 4,200 BTC.

🔥 At present, the Liquid sidechain has been paused, and major exchanges have also suspended LBTC deposits and withdrawals. Blockstream is contacting the relevant responsible parties, and Liquid has temporarily shut down its bridge nodes to prevent new transactions from being submitted to the network.

Honestly, what’s most puzzling is that Liquid says the funds were withdrawn through SideSwap PAK, the Peg-out authorization key, but that key and the other keys were not compromised. As for what vulnerability actually caused this withdrawal, there is still no clear explanation.

💡 On the positive side, other assets issued on Liquid, including USDT, DePix, and RWA, were not affected by this incident. However, the sidechain being paused and LBTC deposits/withdrawals being disabled make it clear this is still not fully resolved.

🤔 Do you think this looks more like a problem with key permission design, or is there an undisclosed vulnerability in the system?

#LiquidNetwork #LBTC #比特币 #blockchain security

Bitwise officially takes over the Lombard BTC (LBTC) options strategy, with an annualized return target set at 2.5%.

Major traditional market players have entered crypto-native yield strategies, and more and more institutions are exploring structured yield products in the Bitcoin ecosystem—an important signal of industry progress.

A 2.5% annualized target may not sound high, but given Bitcoin’s potential for appreciation, it is quite appealing to institutional capital seeking stable returns. As a representative project in the Bitcoin re-staking sector, LBTC has gradually gained recognition in the traditional finance space.

Next, keep an eye on how more traditional asset management firms plan to enter the crypto space. Innovations in yield products across the Bitcoin ecosystem will only keep increasing.

$BTC
#Bitwise #LBTC #Bitcoin ecosystem

Bitcoin return strategies get a major upgrade!
Lombard announced that it will shift LBTC’s yield strategy from Babylon staking to a covered call options strategy managed by Bitwise, targeting a steady annualized return of 2.5%. The first $10 million pilot has already started. The funds are held by institutional custodians Anchorage and Kraken, and are expected to be fully allocated by September.

It’s a promising move, especially since Bitwise’s options management track record provides a strong foundation. While large capital is still on the sidelines in the short term and market volatility remains limited, this shift significantly improves yield stability. Over the long run, it can greatly enhance Bitcoin’s appeal in the DeFi space.

For now, don’t rush to make moves—keep your “ammo” and keep watching. If later the yield can truly hold steady at 2.5% and the trading volume supports it, you can consider closing part of your positions to lock in gains. But if you find that LBTC breaks the 1:1 peg “red line,” don’t think—exit immediately!

#LBTC

💥 HACKER RETURNED $270M IN BITCOIN AS LIQUID NETWORK PREPARES TO RESTART

Liquid Network has recovered 3,400 BTC worth about $270 million, roughly 85% of the Bitcoin withdrawn during Sunday’s security incident.

The funds were returned after Blockstream confirmed that the affected bridge nodes had been patched. However, around 598 BTC, worth roughly $47 million, remains outstanding, while Liquid is still paused as federation members work toward a coordinated restart.

The actors describe themselves as “white hats,” but their intentions remain disputed. Some industry observers have questioned the label because part of the funds is still being held.

Liquid users have been advised not to send BTC to peg-in addresses until the restart is officially confirmed.

Will the remaining BTC be returned?

$BTC $BNB

#LiquidNetwork #Bitcoin #LBTC #BitcoinSecurity #ThuyBNB

#LiquidNetworkSuffers$320MExploit🚨 **#LiquidNetworkSuffers$320MExploit 🚨₿**

Liquid Network suffered a major security exploit after roughly **4,000 BTC worth about $320 million** was withdrawn from its federation wallet. The incident forced Liquid to **pause network activity**, while the parties responsible claimed to be “white-hat” hackers. ([Reuters][1])

🔐 **Key points:**

* 💥 ~**4,000 BTC** affected
* 💰 Loss valued around **$320M**
* ⚠️ About **95% of Liquid's reported BTC reserves**
* 🛑 Liquid temporarily halted transactions
* 🔑 Reports indicate **no federation/private key was compromised**
* 🔧 The exploit appears linked to a vulnerability in the underlying **Elements** software
* 🏦 Blockstream and the attackers are communicating over the Bitcoin blockchain ([Reuters][1])

🔥 **Bottom line:** This is a major warning for Bitcoin sidechains and crypto infrastructure—and could put renewed focus on **L-BTC backing, bridge security and smart-contract vulnerabilities**.

#LiquidNetwork #Bitcoin #BTC #CryptoHack #CryptoSecurity #Blockstream #LBTC #CryptoNews #Blockchain #DeFi #BreakingNews 

[1]: $BNB

$BTC

$ETH

🚨4000 units of Liquid Network were transferred away, $BTC , worth 320 million USD!
The sender left a message claiming to be a "white hat"—are they robbing the rich to help the poor, or are they really trying to help? The official team is currently in contact and communicating.
At present, the sidechain has been suspended, #LBTC deposits and withdrawals are closed, and other assets are temporarily safe.
Another night of witnessing history.

Liquid network paused after white-hat hacker withdrew $320 million in BTC

- Liquid Network (Bitcoin sidechain) is temporarily suspended
- Hacker claiming to be a "white hat" withdrew $320 million in bitcoin
- Exchanges have stopped LBTC deposits/withdrawals
- Blockstream is contacting the person responsible
- Further details have not been provided in the RSS source

#BinanceSquare #CryptoNews #BTC #LBTC

$btc $lbtc

#vlikevn Titanbot

Source: The Block

🏛️ Bitcoin Utility Is Expanding Across DeFi
The crypto industry continues exploring new ways to make digital assets more productive.
Protocols focused on Bitcoin liquidity and decentralized finance are opening additional opportunities for users who want to participate in on-chain ecosystems.
Innovation often begins by extending the usefulness of existing assets.
Infrastructure creates new possibilities.
$LBTC $ETH

#Lombard #LBTC #DeFi #Crypto #Blockchain