Disable new L-BTC swaps following the Liquid incident - #460
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YusukeShimizu merged 4 commits intoSep 7, 2026
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Prevent new exposure during the public Liquid network security incident without disabling the services needed to recover existing contracts. Reject local and remote L-BTC requests before wallet or payment actions, and preserve active swaps when their request messages are retransmitted. Keep backend initialization and recovery callbacks enabled, omit L-BTC from capability announcements, and retain Bitcoin swap behavior. Cover request rejection and persisted recovery with Bitcoin disabled. Adapt Liquid integration tests using a pinned v7.0.0 upgrade fixture. Validate with the unit and race suite, builds, and diff lint. Live-node integration requires Linux; the Nix shell is unsupported on macOS.
The capability handler receives swap messages alongside capability announcements. Reporting these recognized types as unknown produces misleading errors, including for SwapInAgreement (42073). Leave swap processing to the existing swap handler and retain unknown message diagnostics for unrecognized types. Test both logging paths.
Warn users that v7.0.1 rejects new L-BTC swaps while preserving existing recovery mechanisms. Explain that recovery depends on the network and recovered chain, and ask users to retain their data and backend setup. Link the public Liquid Network statement and include its screenshot so readers can find the incident context and official updates.
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Startup still reports Liquid swaps as enabled even though new requests are refused. Make the recovery-only state clear to operators, including those who have disabled Bitcoin swaps. Use the requested refusal and recovery wording for both CLN and LND. Retain LWK network and wallet details, and update the existing config integration test to wait for the new message.
YusukeShimizu
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September 7, 2026 07:38
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Disable new L-BTC swap requests following the public Liquid Network security incident.
Both local RPC requests and incoming peer requests are rejected in both directions, including forced requests. L-BTC is omitted from capability announcements. Bitcoin swaps retain their existing behavior.
Liquid backend initialization, persisted swaps, and recovery callbacks remain enabled, including when Bitcoin swaps are disabled. Recovery still depends on Liquid network availability and the recovered chain; this change does not guarantee recovery. The README includes the official statement and screenshot.
Also stop the capability handler from incorrectly logging recognized swap messages, including
SwapInAgreement(42073), as unknown. The existing swap handler continues to process them.