Litecoin experienced a significant disruption tied to its MimbleWimble Extension Block (MWEB) privacy layer after a critical validation flaw was discovered and exploited across two separate incidents in March and April 2026, according to a post-mortem shared by developer David Burkett.
The issue originated from a bug in how MWEB inputs were validated during block connection, which allowed a miner to include malformed metadata that did not match the actual unspent transaction output being referenced. This enabled an attacker to construct a block where a relatively small input appeared to justify a much larger withdrawal, known as a pegout, from the MWEB system.
Timeline of MWEB Crisis
Interestingly, a chain scan revealed that the vulnerability had already been exploited in March at block height 3,073,882, where an attacker generated an inflated pegout of over 85,000 LTC. The funds were initially moved to a transparent address and split across three outputs, which were quickly temporaril
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