Liquid Network exploit dominates $322 million in crypto losses reported Sept. 1-7

  • Liquid Network suffered the largest reported crypto hack during September 1-7.
  • 3,996 BTC was paid out after an Elements software vulnerability enabled fraudulent L-BTC minting.
  • Notional Finance, XRPH Wallet, Dream Health Chain and RedSonic Vault reported $2.3 million combined.

Crypto-related hacks disclosed from Sept. 1 through 7 totaled about $322 million, with the Liquid Network accounting for more than 99% of reported losses. The Bitcoin-linked network, used by several crypto exchanges, was exploited through a vulnerability in Elements software that allowed 4,000 L-BTC to be minted. SideSwap processed a customer’s peg-out request and the Liquid Federation paid 3,996 BTC before the vulnerability was identified. Liquid suspended the network and SideSwap halted peg-ins, peg-outs and exchanges. Blockstream later said bridge nodes had been patched and that the funds could be safely returned, although about 3,998.5 BTC remained under the attacker’s control at the time of the update. Notional Finance, XRPH Wallet, Dream Health Chain and RedSonic Vault reported combined losses of about $2.3 million.

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