A critical bug in Litecoin's privacy layer allowed the creation of over 85,000 LTC earlier this year, according to a postmortem released on April 28. The vulnerability, linked to Litecoin's Mimblewimble Extension Block (MWEB), enabled an attacker to exploit a validation flaw, generating an inflated peg-out of 85,034 LTC. The issue was identified in March, and coordinated efforts by mining pools froze the affected outputs, with the attacker returning most funds minus an 850 LTC bounty. In April, a second exploit attempt triggered a failure mode, causing some mining nodes to stall and extend an invalid chain. This resulted in a 13-block reorganization, impacting cross-chain protocols like NEAR Intents and THORChain, which processed transactions on the invalid chain, leading to losses. Litecoin developers have since released fixes, restoring normal operations, but the incident highlights the risks of vulnerabilities cascading across networks.