Liquid Network Exploited: 4,000 Unbacked LBTC Minted and Exchanged for BTC

Liquid Network reported that a vulnerability in the Elements software's range proof verification cache was exploited on September 6, allowing the creation of approximately 4,000 LBTC without Bitcoin backing. The attacker used the SideSwap platform to exchange these tokens for BTC, reducing the network's reserves from 4,205 BTC to 197 BTC. Blockstream patched the vulnerability on September 7. The attacker, claiming to be a white-hat researcher, returned 3,400 BTC, leaving 598.5 BTC outstanding.