$9 000 USD

NOVEMBER 2021

GLOBAL

ECLAIR

DESCRIPTION OF EVENTS

"[A]lthough Lightning is a valid utility of the Bitcoin protocol, while users are within the Lightning Network their transactions and activities do not benefit from Bitcoin’s blockchain."

 

"In particular, Lightning Network transactions are not quickly validated by 12,000 globally distributed full nodes, nor secured by 160 million terahashes per second. Until they leave Lightning and settle on-blockchain, users must trust a relatively small number of counterparties."

 

"Founded in 2014, ACINQ is a French startup building products and services for the Bitcoin ecosystem. We are based in Paris, France." "ACINQ is one of the leading companies working on Bitcoin scalability. Together with other members of the community, we are building an open standard for Lightning, a scalable instant payment network for the Bitcoin blockchain."

 

"Éclair by French unit ACINQ is" "[a] popular Bitcoin tipping bot for Telegram messenger powered by the Lightning Network." "Éclair is one of the Lightning Network’s top-three implementations. The other two are LND by Lightning Labs, and C-Lightning by Blockstream."

 

"Eclair is developed in Scala, a powerful functional language that runs on the JVM, and is packaged as a ZIP archive." "Eclair Mobile is a next generation, Lightning-ready Bitcoin wallet. It can be used as a regular Bitcoin wallet, and can also connect to the Lightning Network for cheap and instant payments." "Eclair offers a feature-rich HTTP API that enables application developers to easily integrate. For more information please visit the API documentation website. Eclair's JSON API should NOT be accessible from the outside world (similarly to Bitcoin Core API)."

 

"[The] popular Bitcoin tipping bot for Telegram messenger powered by the Lightning Network was exploited over the weekend by hackers who stole 14 million satoshis (0.14 BTC, worth about $9,480)."

 

"In last weekend’s Lightning Network Transaction Bot theft, the attackers exploited the Éclair API." "A group of thieves have exploited a very subtle vulnerability on @lntxbot yesterday and stolen ~14 million sats." "According to Lightning Network Transaction Bot’s Twitter account, hackers exploited a vulnerability in Éclair’s API to siphon the Bitcoin."

 

"The cause of the theft was a reliance on the output of `getsentinfo` from Eclair API being `[]` only when no payment was being attempted for a given payment hash, when in fact it will be that for a few seconds even after the `payinvoice` method is called."

 

"getsentinfo may return [] because it doesn't know anything about the given --paymentHash or --id, which means a payment wasn't performed or attempted, and is not pending."

 

"But it may also return [] for a payment that is in process of being attempted, for some seconds or fractions of second before it is actually attempted, which has the opposite meaning."

 

"For services that send payouts automatically on behalf of users and then check these payment statuses automatically this can lead to terrible loss of funds."

 

"According to ACINQ’s Éclair GitHub repository, it is a “feature-rich HTTP API that enables application developers to easily integrate” its Scala implementation of the Lightning Network. The repository page warns that the JSON API should not be easily accessible to the outside world."

 

"The bot will be offline while we figure out what to do next." Someone named Alistair Milne said "I will replace the funds, DM me".

The Eclair wallet functions as a standard send/receive wallet but also allows you to open a payment channel to recieve or make payments. The Lightning Transmission Bot on Telegram (@lntxbot) was using the Eclair API to enable it's functionality. Due to an exploit in that hot wallet, the funds in the wallet were able to be taken. It appears that someone else on Twitter volunteered to replace them since the amount was small enough.

Sources And Further Reading

 For questions or enquiries, email info@quadrigainitiative.com.

Get Social

  • email
  • reddit
  • telegram
  • Twitter

© 2021 Quadriga Initiative. Your use of this site/service accepts the Terms of Use and Privacy Policy. This site is not associated with Ernst & Young, Miller Thompson, or the Official Committee of Affected Users. Hosted in Canada by HosterBox.