Here's an unpopular opinion.
#Liquid is an important project in the Bitcoin ecosphere. It is unfortunate, but ultimately good, the bug was found.
We should hope that that liquid continues to harden.
Many of the features people have wanted to add to Bitcoin can be made accessible on side chains like liquid. Privacy is one of them. In fact, it was their confidential transaction implementation where the bug was found. The bug involved a logic error in proof caching in which there was nuance missed in what was cached, which was able to be exploited so that the attacker could get around range proofs and include a negative value, thus being able, through a very precise set of transactions, to create LBTC out of thin air.
Some folks may not know that Confidential Transactions (CT) was invented by Greg Maxwell of Bitcoin Core.
One of the first implementations of CT was in Monero and Monero still uses it. Luckily, Monero doesn't do the same sort of proof caching that the Elements system does. Notably, for years, Greg Maxwell included a Monero address in his Bitcoin Talk Forum profile.
People are becoming very tribal and there's a lot of laughing or finger pointing from people about this failure in liquid.
This is both unfortunate and foolish, in my opinion.
The tech being worked out on Liquid is important to Bitcoin's success.
Liquid has been doing complexity the right way in that they are building things on a layer of Bitcoin that we would not want in the base layer protocol.
There is some irony in this sense. Because some of that complexity is what was exploited. And this is the reason why people balk at ideas of even changing policy in Core.
I for one hope liquid recovers all of their assets and continues to improve and be used as the important layer to Bitcoin sidechain.
M0053 / M0053 (Balakay2b edition)
npub1qk…x9qas
2026-09-08 22:15:53 UTC
Author Public Key
npub1qktjyk0vdqlfss7wztawdnka5phx2p3vlvq50x0z402jk2fjhtnqlx9qasPublished at
2026-09-08 22:15:53 UTCEvent JSON
{
"id": "e8b0f128f4b340df90922a1086d3fef1e17558bcfdd3400e0a4c922bed62de57",
"pubkey": "05972259ec683e9843ce12fae6cedda06e65062cfb014799e2abd52b2932bae6",
"created_at": 1788905753,
"kind": 1,
"tags": [
[
"t",
"Liquid"
],
[
"t",
"liquid"
],
[
"client",
"Amethyst"
]
],
"content": "Here's an unpopular opinion.\n\n#Liquid is an important project in the Bitcoin ecosphere. It is unfortunate, but ultimately good, the bug was found.\n\nWe should hope that that liquid continues to harden.\n\nMany of the features people have wanted to add to Bitcoin can be made accessible on side chains like liquid. Privacy is one of them. In fact, it was their confidential transaction implementation where the bug was found. The bug involved a logic error in proof caching in which there was nuance missed in what was cached, which was able to be exploited so that the attacker could get around range proofs and include a negative value, thus being able, through a very precise set of transactions, to create LBTC out of thin air.\n\nSome folks may not know that Confidential Transactions (CT) was invented by Greg Maxwell of Bitcoin Core.\n\nOne of the first implementations of CT was in Monero and Monero still uses it. Luckily, Monero doesn't do the same sort of proof caching that the Elements system does. Notably, for years, Greg Maxwell included a Monero address in his Bitcoin Talk Forum profile.\n\nPeople are becoming very tribal and there's a lot of laughing or finger pointing from people about this failure in liquid.\n\nThis is both unfortunate and foolish, in my opinion.\n\nThe tech being worked out on Liquid is important to Bitcoin's success.\n\nLiquid has been doing complexity the right way in that they are building things on a layer of Bitcoin that we would not want in the base layer protocol.\n\nThere is some irony in this sense. Because some of that complexity is what was exploited. And this is the reason why people balk at ideas of even changing policy in Core.\n\nI for one hope liquid recovers all of their assets and continues to improve and be used as the important layer to Bitcoin sidechain.",
"sig": "69076fd1610528f3d1bba52e8257445f9136d19f6ee39127a12c5fa90aa4b5fcef68004db673b87c72b65f398e9c72d2d2653d44ed79ab8d69c187310685d842"
}