We would like to express our sincere appreciation to every single person who attended our panel alongside @monad, @Securitize, @centrifuge, and @chainlink. Seeing such an impressive crowd today at the @DeFinition_evt hosted by @AccountableData was absolutely wonderful. Make sure to keep an eye out for the upcoming interview where @FINTECHTVglobal will be speaking with @MontBlancDeFi.
We are gearing up for a highly active week in Singapore. If you are interested in discussing onchain risk, our team would be thrilled to connect with you at several upcoming events.
You can catch up with us on Oct 7 at @DeFinition_evt by checking out https://luma.com/y2stptuj?tk=6pQLU3
On Oct 8, we will be participating with @yield_network. Find out more at https://luma.com/4nfjgvmv
Finally, we will be at the @Vault__Summit on Oct 9, and you can visit https://vaultsummit.xyz for further information.
On September 6th, an attacker successfully exploited a software vulnerability within Blockstream's Liquid Network. This breach allowed the individual to generate approximately 3,996 unbacked L-BTC. The attacker subsequently used a federation member to exchange these unauthorized tokens for actual bitcoin, ultimately draining roughly $319 million from the reserve of the federation.
It is important to emphasize that no private keys were compromised during this event. The issue stemmed entirely from a flaw in the transaction verification process, which inadvertently permitted a counterfeit transaction to be approved.
We have put together a detailed summary to help you understand the full scope of the situation. Our document explores exactly how the attack unfolded and reviews the responsive actions taken by Blockstream. Furthermore, we evaluate the important question of whether Nexus Mutual would have offered coverage for this particular incident.
You can access the complete analysis by visiting this link: https://nexusmutual.io/blog/liquid-network-incident-report