Alleged White-Hat Hackers Withdraw 4,000 Bitcoin From Blockstream's Liquid Network Federation Reserves
Alleged white-hat hackers withdrew 4,000 Bitcoin from Blockstream's Liquid Network Federation Reserves, causing a sidechain to be paused and affecting the LBTC asset.
Intelligence analysis by Qwen 2.5 (3B)
Alleged white-hat hackers exploited a bug to withdraw 4,000 Bitcoin from Blockstream's Liquid Network Federation Reserves, impacting the LBTC asset and causing a sidechain to be paused.
Some bad guys tricked a system and took 4,000 Bitcoin. Now the system is paused and people can't use their Bitcoin as before.
Analysis
{"heading_1":"Mechanism of the Hack","content_1":"The hackers exploited an inflation bug on the LBTC sidechain to create over 4,000 LBTC that did not exist before, and cashed out for on-chain Bitcoin from the federation.","content_2":"The hackers used the SideSwap Peg-out Authorization Key to withdraw 4,019.4 BTC from the reserve address, which was signed by the federation members' HSM security servers.","content_3":"The hackers moved the funds to an address ending in 6gyqjlte, from which they sent a message on the OP_RETURN arbitrary data field saying 'we are whitehats. contact us on chain.'","content_4":"A later OP_RETURN spend from the hacker address carried 'Please contact us on Signal @m671aw.70', however, this may be spam and does not share a link to the address with the stolen funds.","content_5":"The hacker also sent a small mainnet transaction to the hacker address, followed by an OP_RETURN saying 'Please contact [email protected]' from a Blockstream public address, though this remains unconfirmed."}
Key points
- Alleged white-hat hackers withdrew 4,000 Bitcoin from Blockstream's Liquid Network Federation Reserves
- The sidechain was paused and affected other issued assets like USDT, DePix, and RWAs
- The hackers exploited an inflation bug on the LBTC sidechain to create over 4,000 LBTC that did not exist before
- The hacker moved the funds to an address ending in 6gyqjlte, from which they sent a message saying 'we are whitehats. contact us on chain.'
- The hacker also sent a small mainnet transaction to the hacker address, followed by an OP_RETURN saying 'Please contact [email protected]' from a Blockstream public address
If the hackers return the Bitcoin, users can continue to use their LBTC. If not, users will have to wait for the hackers to resolve the issue.
If the hackers don't return the Bitcoin, users will lose their savings and may face long-term issues with the LBTC.
