Statement on today's Liquid incident
Today at 14:05 UTC a customer sent 4,000 L-BTC to the SideSwap peg-out service. Our service processed it like any other order: the L-BTC was burned on Liquid with a valid peg-out authorisation, and at 14:28 UTC the Liquid Federation paid 3,996 BTC to the customer's Bitcoin address.
Blockstream has since established that the L-BTC in that order was created through a bug in the Elements software. As Blockstream stated, SideSwap's peg-out authorisation key was not compromised, and nor was any SideSwap system. Our service had no way to tell those coins from any other L-BTC.
What this means for you:
• Your wallet is not affected. SideSwap is non-custodial and your assets are controlled by your own keys. There is nothing you need to do.
• Liquid is paused by the Federation, so swaps, peg-ins and peg-outs are paused in SideSwap until the network resumes.
• Peg-outs already paid on Bitcoin are complete. If you have a peg-in or peg-out that has not completed, email [email protected] with your transaction id and we will handle it individually.
Blockstream and the Liquid Federation are leading the network-level response, including how and when the network restarts. We will not speculate on that.
The team is offline overnight. We will answer questions here and by email from tomorrow morning (UTC). Please do not send any new peg-in or peg-out deposits until we say services are back.
Jacob is correct here—we really do earnestly believe AI could kill all humans! I personally think it is >10% within the next decade. I believe Anthropic is trying its best, but we do not yet have a plan to solve alignment for superintelligence and are not clearly on track to.
yo creo que En 10 años nos va a ir muy muy bien o nos va a ir muy muy mal, no veo escenarios intermedios
lo he estado pensando mucho este año y si he hecho varios cambios, dejé vicios, me puse a mover el 🐖 como nunca, mejorar mucho el sueño, ir más a la montaña, dejar de fecuentar a algunas personas, sigo pensando qué más cambios hacer
yo creo que En 10 años nos va a ir muy muy bien o nos va a ir muy muy mal, no veo escenarios intermedios
lo he estado pensando mucho este año y si he hecho varios cambios, dejé vicios, me puse a mover el 🐖 como nunca, mejorar mucho el sueño, ir más a la montaña, dejar de fecuentar a algunas personas, sigo pensando qué más cambios hacer
We are aware of a security incident on @Liquid_BTC. Purported white-hat hackers have withdrawn ~4,000 BTC (~$320 million) from the Liquid Federation wallet. The @Blockstream team is working on contacting them on-chain with a signed message.
What we know so far is that the funds were withdrawn via the SideSwap PAK (Peg-out Authorization Key), but that key was not compromised, nor were any others.
Exchanges have been notified and have already paused (or will pause) LBTC deposits and withdrawals. Other Liquid assets such as USDT, DePix, and RWAs are unaffected by this security incident.
Bridge nodes have been temporarily disabled, so no new transactions can be submitted to the network. Effectively, the Liquid sidechain is paused until this issue is resolved.
Liquid wallets will be impacted, and we're sorry for any inconvenience. Federation members are actively working on resolving this so we can restore normal network activity.
You can monitor the situation via @mempool's https://t.co/M46Zhn8nlY site below:
https://t.co/B8j9u4j6i4