Published Sep 7, 2026, 3:12 PM ET · Updated 2 months ago · 1 source

Liquid Network bug creates unauthorized Bitcoin, but user funds are safe

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Original Report

A software bug in Blockstream's Liquid Network led to the unauthorized creation and movement of nearly 4,000 Bitcoin, though user wallets are unaffected because SideSwap is non-custodial and its systems were not compromised. The issue stems from a bug in the Elements software that created L-BTC, leading to a temporary pause of the Liquid Network by the Federation.