Current outcome
On Sept. 6, Liquid lost almost 4,000 Bitcoin through a withdrawal its software approved even though the private keys used to authorize it had not been stolen; according to TRM Labs' reconstruction, attackers exploited a software flaw to create L-BTC without backing Bitcoin and exchanged those tokens for real coins. Crypto insurance can cover losses without guaranteeing customers full reimbursement, and even successful repayment can leave customers short if compensation is calculated in dollars instead of Bitcoin.
Progress timeline
1 material updates- #01
Why keeping your private keys safe won’t always stop crypto theft
On Sept. 6, Liquid lost almost 4,000 Bitcoin through a withdrawal its software approved even though the private keys used to authorize it had not been stolen; according to TRM Labs' reconstruction, attackers exploited a software flaw to create L-BTC without backing Bitcoin and exchanged those tokens for real coins. Crypto insurance can cover losses without guaranteeing customers full reimbursement, and even successful repayment can leave customers short if compensation is calculated in dollars instead of Bitcoin.
Source evidence: CryptoSlate