[Liquid Clarification: Private Keys Not Compromised, Theft Exploited Open-Source Elements Software Vulnerability, 3,400 BTC Recovered] BlockBeats News, September 9 – Liquid Network released an incident report this morning stating that on September 6, a vulnerability in its open-source Elements software was exploited. The attacker minted approximately 4,000 LBTC that were not backed by BTC reserves and exchanged them for around 4,000 BTC using SideSwap's Peg-out mechanism. Following the incident, Liquid's reserves dropped from about 4,205 BTC to 197 BTC. Liquid clarified that the incident was not due to private key leakage or a breach of the federation nodes. Currently, the attacker has returned 3,400 BTC, with approximately 598.5 BTC still to be recovered. Blockstream has completed the vulnerability fix, but the Liquid Network remains paused. The relevant team is preparing the emergency release of Elements v23.3.4, and operations will resume after completing security reviews and restoring the network's status. [Original Link]