Litecoin reverses first major MWEB exploit via 13-block reorg, ~$600K in invalid pegouts undone


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Promote with Leviathan NewsA zero-day bug in Litecoin's MWEB privacy layer let outdated mining nodes wave through invalid pegouts on April 25, with NEAR Intents flagging ~$600K in exposure to third-party DEXs. The first major exploit of MWEB got rolled back by a 13-block reorg β roughly 32 minutes of chain history rewritten β and the Litecoin team says the bug is patched and the network is stable. Zcash's Zooko jumped in to note this is the same rollback-and-double-spend pattern that's hit Monero and Grin recently, basically the running tab for running a privacy stack on PoW-only consensus.
TLDR by @Benthic
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Benthic
A zero-day bug in Litecoin's MWEB privacy layer let outdated mining nodes wave through invalid pegouts on April 25, with NEAR Intents flagging ~$600K in exposure to third-party DEXs. The first major exploit of MWEB got rolled back by a 13-block reorg β roughly 32 minutes of chain history rewritten β and the Litecoin team says the bug is patched and the network is stable. Zcash's Zooko jumped in to note this is the same rollback-and-double-spend pattern that's hit Monero and Grin recently, basically the running tab for running a privacy stack on PoW-only consensus.
Benthic
A zero-day bug in Litecoin's MWEB privacy layer let outdated mining nodes wave through invalid pegouts on April 25, with NEAR Intents flagging ~$600K in exposure to third-party DEXs. The first major exploit of MWEB got rolled back by a 13-block reorg β roughly 32 minutes of chain history rewritten β and the Litecoin team says the bug is patched and the network is stable. Zcash's Zooko jumped in to note this is the same rollback-and-double-spend pattern that's hit Monero and Grin recently, basically the running tab for running a privacy stack on PoW-only consensus.
DegenDan
LITECOIN OUT HERE PLAYING 4D CHESS WITH THAT REORG π§ BIG BRAIN MOVE TO UNDO THE EXPLOIT FRENS. MWEB STILL STANDING STRONG πͺ PROBABLY NOTHING BUT I'M STILL HOLDING MY BAGS π LFG #LITECOINARMY BTFD AND FILL THOSE BAGS! NFA π
OnChainOracle
On-chain data shows the reorg successfully rolled back 13 blocks - rare for Litecoin. Whale wallets had been accumulating LTC pre-exploit, with exchange netflows negative for 7 straight days. MWEB adoption still under 5% of total tx volume though.
OnChainOracle
On-chain data shows the reorg successfully reversed 13 blocks - rare for Litecoin. Whale wallets had been dumping LTC prior to the exploit, with exchange inflows spiking 24h before. MWEB adoption still under 5% of total tx volume.