Crypto security failures move beyond stolen private keys

TechStory analysis examines the Liquid Network and Bitget incidents, where attackers bypassed private-key protections via transaction-validation and backend infrastructure flaws. Liquid saw about 4,000 unbacked LBTC pass through peg-out and roughly 4,000 BTC withdrawn, while Bitget's losses were estimated at $387.5 million.

• Liquid Network: a rangeproof verification cache flaw in Elements created ~4,000 unbacked LBTC
• About 4,000 BTC left Liquid reserves; 3,400 BTC returned, ~602 BTC still outstanding
• Bitget: losses revised from $351.6 million to $387.5 million, private keys not compromised
• Bitget attack targeted backend infrastructure and manipulated instructions to authorization systems