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Elements L-BTC creation security flaw

Vulnerability
First reported
Last updated
Happening score
H score 43
1 unique sources, 1 articles

Summary

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A bug in Elements created the L-BTC used in an unauthorized Liquid Network peg-out, tying the theft path to a specific software flaw. The flaw affected the software Liquid runs on and was linked to the withdrawal of roughly 4,000 bitcoin from the federation wallet. Blockstream said updated software has been deployed and the network is still paused while bridge nodes are patched and restarted. The incident left the status of the remaining reserve backing L-BTC unresolved.

Related Happenings

Liquid Network hit by cyberattack

Incident
H score46 First: 08.09.2026 17:54 Last: 08.09.2026 17:54 Sources 1

How related: Blockstream, which provides the technology for Liquid, said hackers who claim to be white hats took about 4,000 bitcoin from the federation wallet.

About this happening: Liquid Network suffered a federation wallet theft that removed nearly 4,000 bitcoin and left the network paused, disrupting L-BTC redemption and reserve backin...

Open Happening

Timeline

  1. 08.09.2026 17:54 2 articles · 18h ago

    Elements L-BTC creation security flaw

    Initial Disclosure

    The flaw first surfaced when the unauthorized peg-out was attributed to a bug in Elements that created the L-BTC used in the withdrawal. Liquid’s bridge remained paused while operators worked on patched software and restart preparations.

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