Litecoin MWEB reorg after zero-day peg-out; DoS apology

Litecoin rewrote parts of its transaction history after a zero-day flaw in its MWEB privacy layer let an attacker “peg out” funds to a third-party decentralized exchange. The exploit triggered a 13-block MWEB reorg, effectively purging invalid transactions (about 30 minutes of history, given ~2.5-minute block times). Litecoin also said the same weakness enabled a denial-of-service attack that disrupted major mining pools, which later coordinated a defensive reorg and moved to a patched chain version. In the latest update, Litecoin acknowledged deleting earlier communications about the incident and apologized for the tone of its social media posts. It described the reorg as a “natural purge mechanism” for faulty transactions. Separately, observers raised coordination and disclosure-timing concerns, while an estimate suggested multi-chain protocol NEAR Intents could face roughly $600k in exposure. The social controversy and the security-confidence debate remain the main risk drivers for Litecoin traders. Litecoin was trading near $55.35 at the time of publication (about -1% on the day), suggesting limited immediate market damage, but ongoing narrative risk could affect sentiment.