Approximately 3,996 BTC left Liquid’s federation reserve on September 6, 2026 through an apparently authorized SideSwap peg-out, even though Liquid says neither the SideSwap Peg-out Authorization Key nor the relevant federation keys were compromised. The L-BTC involved has been attributed to an Elements software bug, while the party controlling nearly 3,998.5 BTC describes itself as a white hat and says it intends to return “most” of the funds only after the vulnerability is patched across the network.On September 6, the...
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