Nearly $320 million in Bitcoin left the Liquid Network’s federation wallet on September 6, after a bug in Blockstream’s Elements node software enabled a withdrawal of 3,996 BTC from the federation’s reserves. The reserves dropped from approximately 4,200 BTC to 197 BTC, a 95% decline in a single transaction. The bug bypassed the 11-of-15 federation signing requirement, even though the corresponding volume of L-BTC was burned. Actors claiming to be white hats have returned zero BTC as of the latest reports. With only 197 BTC remaining in reserves, the network has almost no buffer to handle redemption demand if peg-outs reopen, while other assets on the network such as USDT and tokenized securities remained unaffected.
Source: Read the original article
