BTC/LND Wallet Empty After Restore

[wakedog]

Not sure if this question goes here or not, so forgive me if I am in the wrong place

I am running a full bitcoin node and Lightning node (LND). Previously, I was hosting the nodes on a RaspBerry PI but have started from scratch on an Ubuntu 18 Linux Virtual Machine (VM). I stupidly formatted and overwrote the RaspBerry PI drive and did not save the wallet.dat. However, I have the 24 character seed words, seed password, and wallet password.

After going through the restore process on the new BTC/LND node, it said it was a success, and I synched the rest of the chain to catch up to BTC. However, my balance shows zero and it has been a couple of days. Blockchain.com shows the transactions still however. My node does not.

I had three channels open before I shutdown the old node on the PI. The channels were not closed before I erased the drive.

I only put $10 in (for things like this) so it's not a big deal if I can't get it back. Just wondering what may be wrong.


Transaction Hashes:

https://www.blockchain.com/btc/tx/ec9101ec8dda7c160a9116190bbc8f8475bb9320470679f5065b76a784cc8ec0
https://www.blockchain.com/btc/tx/19e84fd627d123baf1eb7d23a804a79467538d337ad915b671900998ed8d2407


Bitcoin Client Software and Version Number: Bitcoin Core 0.17.1
LND Version: 0.5.1
Operating System: Ubuntu Linux 18
System Hardware Specs: i5 CPU x 2 cores w/ 8GB RAM
Description of Problem: Lightning Wallet Balance Missing
Any Related Addresses: None
Any Related Transaction IDs: None
Screenshot of the problem: None
Log Files from the Bitcoin Client: Bitcoind not having any issues


Thanks in advance,

=_wakedog_=

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[Heisenberg_Hunter]

I am not quite familiar with how exactly Lightning works in real time as I have never used them. But based on my readings and understanding of the concept I have few answers which may/ may not solve this issue. If this seems to be wrong someone try to correct them.

Bitcoin Node and Lightning Node are entirely two different things. In order for you to restore the blockchain (onchain/ordinary wallet)  funds, both the passphrase and the password is quite enough but restoring a lightning wallet is not the same case. Paraphrase is not helpful for you to restore the LN funds as restoring a LN fund requires state of the channel additionally. In simple terms, you would require "hsm_secret" file and "lightningd.sqlite3" file to restore the state of the wallet as for how it was during the funding.

I also assume that you have opened the channels to transact within yourself, if so you should have the other wallet in control and you can unilaterally close the channel from one end, if this is done you can restore the funds with the use of hsm_secret file. Truly speaking restoring lightning channels are quite dangerous and would result in complete loss of funds. If you try to restore the LND with the new state of the wallet the opposite party would think this as a breach of terms and would terminate for transaction which might also result in loss of your funds.

P.S These are completely based on my understanding of LN, it may even be wrong.

[wakedog]

newyearbtc, I am not sure I can see the private key in LND. Still learning as I go =)

I will working on this more tonight, but have a feeling the funds are lost to the blockchain forever. Maybe there is a command in LND to expose the private key, since I have the seed words, seed password, and wallet password?

Also, I am not sure about using the wallet and adding more funds to it. I will probably make another wallet, just in case.

[wakedog]

Heisenberg_Hunter, thanks for the reply!

If getting the funds back requires the hsm_secret and lightningd.sqlite3, then I am out of luck 

I have not opened channels back to the nodes I had before. But weirdly, they show up as 'peers' and not channels. I will be working on this more tonight, and see if I can open channels back with the nodes. Since channel state is lost, I doubt it's recoverable. But thought I would access the knowledge of those smarter than me.


=_wakedog_=

[KingZee]

Are you sure those channels are closed? From my understanding unless you choose to close them, they will remain open, or the other nodes can choose to unilaterally close them.

Like Heisenberg said, you need the hsm_secret to recover your onchain funds. As for funds in channels, I honestly cant figure out from a quick search how you can recover them. Channel states is stored in the .sqlite3 file, but I think that using it might cause conflicts in case you still have it.

[Heisenberg_Hunter]

but have a feeling the funds are lost to the blockchain forever.

Why don't you try to close the channel unilaterally if you are the other user too? I believe your other wallet is good enough to close the channel, which will get back your funds?

Maybe there is a command in LND to expose the private key, since I have the seed words, seed password, and wallet password?

I don't think so there exists something like that. But you can try "listfunds" to check the funds present in your wallet.

I have not opened channels back to the nodes I had before. But weirdly, they show up as 'peers' and not channels.

I don't get your point in this.  

see if I can open channels back with the nodes. Since channel state is lost, I doubt it's recoverable. But thought I would access the knowledge of those smarter than me.

No one is smarter than anyone. It is just the implementation of one's gained knowledge at the right place and at the right time.

Unless you don't have access to the "lightningd.sqlite3" file I think it would not be possible to open the same channel as those state of the channel is unrecoverable. Both these files are equally important as seed and a password in the normal onchain node.

Lightning Network is new to everyone. We need to try things out like these with minimal btc and learn.

[wakedog]

KingZee, I checked and the channels are all closed. At this point, it looks like the 300,000 or so satoshi's are gone.

Now I know what to back up when using Lightning on the mainnet. I know channel state is not really easy to backup at this pint and not a good idea anyway. So, I am calling this one good and starting with a new wallet. This will hurt more when satoshis are worth a penny each, or even worse, dollars 

Thanks for the help all!


=_wakedog_=

[KingZee]

KingZee, I checked and the channels are all closed. At this point, it looks like the 300,000 or so satoshi's are gone.

Now I know what to back up when using Lightning on the mainnet. I know channel state is not really easy to backup at this pint and not a good idea anyway. So, I am calling this one good and starting with a new wallet. This will hurt more when satoshis are worth a penny each, or even worse, dollars  

Thanks for the help all!


=_wakedog_=

When a channel is forcefully closed, funds are kept in the channel's contract for a few more blocks until they're available for you. If you still own the old lightning wallet, you need to wait a while after the other party closes the channel so that the funds get broadcasted on chain for you to get back.

Do you still have the old hsm_secret? Or addresses from the onchain lnd wallet?