Wu Blockchain has learned that Liquid Network released an incident report stating that on September 6, a vulnerability related to range proof validation caching in its underlying open-source software, Elements, was exploited. The attacker minted approximately 4,000 LBTC without BTC reserve backing and exchanged them for about 4,000 BTC using the standard peg-out mechanism via SideSwap. This caused Liquid's reserves to drop from around 4,205 BTC to 197 BTC. The official report clarified that no private key leaks were involved in this incident, and other Liquid-issued assets like USDT were not directly affected by the vulnerability. Blockstream deployed a patch on September 7, and the attacker subsequently returned 3,400 BTC. However, approximately 598.5 BTC remain unreturned. Liquid Network is still in a paused state, and the emergency version Elements v23.3.4 is expected to be released within about 48 hours. The network will resume operations once repairs and status adjustments are completed. https://(wublock123.com)/news/liquid-network-bug-report-elements-cache-validation-minted-4000-unbacked-lbtc-68042