Litecoin Chain Reorganization Following MWEB Exploit

Litecoin experienced a significant chain reorganization after attackers exploited a zero-day vulnerability in its Mimblewimble Extension Blocks (MWEB) feature. According to NS3.AI, the reorganization affected blocks from 3,095,930 to 3,095,943. The Litecoin Foundation revealed that the flaw allowed older mining nodes to accept invalid MWEB transactions, facilitating unauthorized peg-outs and routing funds to third-party decentralized exchanges. Aurora Labs CEO Alex Shevchenko noted that attackers leveraged this vulnerability to execute double-spending attacks against multiple cross-chain swap protocols, with NEAR Intents exposure estimated at approximately $600,000. The Litecoin Foundation confirmed that the offending transactions were removed and the vulnerability has been fully patched. Despite these measures, some trading venues reported financial losses due to the exploit.