Today at 14:05 UTC a customer sent 4,000 L-BTC to the SideSwap peg-out service. Our service processed it like any other order: the L-BTC was burned on Liquid with a valid peg-out authorisation, and at 14:28 UTC the Liquid Federation paid 3,996 BTC to the customer's Bitcoin address.
Blockstream has since established that the L-BTC in that order was created through a bug in the Elements software. As Blockstream stated, SideSwap's peg-out authorisation key was not compromised, and nor was any SideSwap system. Our service had no way to tell those coins from any other L-BTC.
What this means for you:
• Your wallet is not affected. SideSwap is non-custodial and your assets are controlled by your own keys. There is nothing you need to do.
• Liquid is paused by the Federation, so swaps, peg-ins and peg-outs are paused in SideSwap until the network resumes.
• Peg-outs already paid on Bitcoin are complete. If you have a peg-in or peg-out that has not completed, email hello@sideswap.io with your transaction id and we will handle it individually.
Blockstream and the Liquid Federation are leading the network-level response, including how and when the network restarts. We will not speculate on that.
The team is offline overnight. We will answer questions here and by email from tomorrow morning (UTC). Please do not send any new peg-in or peg-out deposits until we say services are back.
Comment from the SideSwap telegram chat!
Statement on today's Liquid incident
Today at 14:05 UTC a customer sent 4,000 L-BTC to the SideSwap peg-out service. Our service processed it like any other order: the L-BTC was burned on Liquid with a valid peg-out authorisation, and at 14:28 UTC the Liquid Federation paid 3,996 BTC to the customer's Bitcoin address.
Blockstream has since established that the L-BTC in that order was created through a bug in the Elements software. As Blockstream stated, SideSwap's peg-out authorisation key was not compromised, and nor was any SideSwap system. Our service had no way to tell those coins from any other L-BTC.
What this means for you:
• Your wallet is not affected. SideSwap is non-custodial and your assets are controlled by your own keys. There is nothing you need to do.
• Liquid is paused by the Federation, so swaps, peg-ins and peg-outs are paused in SideSwap until the network resumes.
• Peg-outs already paid on Bitcoin are complete. If you have a peg-in or peg-out that has not completed, email hello@sideswap.io with your transaction id and we will handle it individually.
Blockstream and the Liquid Federation are leading the network-level response, including how and when the network restarts. We will not speculate on that.
The team is offline overnight. We will answer questions here and by email from tomorrow morning (UTC). Please do not send any new peg-in or peg-out deposits until we say services are back.
Statements: x.com/Liquid_BTC and x.com/side_swap