NGRAVE has released an investigation report revealing the cause of the fake security alert in the LIQUID app on October 17. The attacker used the first key, exposed by a server error, to hijack access to a third-party push notification provider, obtain a second key, and send phishing links. Although NGRAVE quickly disabled the keys after detecting unusual activity on October 11, the attacker had already succeeded. NGRAVE emphasized that the ZERO hardware wallet was not compromised, the LIQUID code was not leaked, and funds are safe for users who did not enter their recovery phrase or Perfect Key. NGRAVE is currently tracking the stolen funds and will restrict LIQUID to opening links from its own sources only, while introducing alerts for unusual key activity and a short-lived key mechanism to strengthen security.

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