Alpen Labs AI Reproduces Vulnerability Behind Liquid Network's $320 Million Bitcoin Exploit

Alpen Labs reported its AI agents reproduced the proof-checking vulnerability behind the Liquid Network's $320 million exploit within one hour, as Liquid Bitcoin peg-outs remain suspended. The September 6 security breach occurred after an Elements software flaw allowed an attacker to mint unbacked L-BTC and drain approximately 3,996 BTC. While negotiations led to the return of around 3,400 BTC, the hacker retains roughly 598.50 BTC valued at over $51 million. Bull Bitcoin users face waits of up to 30 days to redeem L-BTC for native BTC, with inbound Lightning payments also halted.