Litecoin Network Restored After MWEB Exploit Triggers Chain Split

The Litecoin network has experienced a brief period of instability due to a temporary chain split caused by an exploit of the MimbleWimble Extension Blocks (MWEB) privacy layer.

On April 25, an attacker took advantage of a zero-day bug in the MWEB code to manufacture a fraudulent pegout, which is a mechanism that moves litecoin from the MWEB layer back to the main chain. The malicious transaction fabricated a withdrawal of 85,034 LTC, creating an inflation vulnerability.

The disruption stalled several major mining pools and produced a temporary chain split, with two competing versions of the blockchain operating simultaneously. However, F2pool quickly stepped in and mined all 13 blocks on the valid Litecoin chain, providing the consecutive proof-of-work needed to make the valid version the definitive record.