Stacks Founder Calls for Withdrawal Limits After Liquid Theft

The recent theft on Liquid, where approximately 4,000 BTC were stolen, has sparked discussion about security measures. Stacks Founder Muneeb Ali suggested implementing withdrawal limits and temporary delays on exchanges and withdrawals to mitigate damage.

Ali indicated that the failure was not cryptographic but rather an error in the integration logic of Elements, a code derived from Bitcoin Core used by Liquid. A recent patch for a previous vulnerability likely introduced the new error that was exploited by hackers.

Ali emphasized that Stacks does not use Elements and therefore is not affected by this incident. However, he noted that his team employs AI models to audit their code and has bug bounty programs in place for finding vulnerabilities.