Aqua wallet - Bitcoin, Lightning, Liquid

[bitmover]

Everyone please check out what I wrote in my last post in this topic from August 20.
I had a feeling some hack could happen with Liquid network, and oh boy was I right (again).
I stopped using Aqua wallet and converted everything back to bitcoin mainnet, and I hope you did the same thing.
This was a huge hack, but luckily hacker returned most of the coins.

Alfa wallet...

There is no such thing as Alfa wallet 

I have a few bucks ($ 30) in bitcoin mainnet in aqua wallet. I converted it from LN long ago. They are still available after this hack.

I will  move them to my main mobile wallet.

I think the best thing about Aqua isn't the Liquid network, but their good and easy to use LN implementation. Unfortunately, they convert LN to Liquid internally and also use Boltz. Looks like this wallet is doomed, as both liquid and boltz  doesnt look safe....
https://jan3.zendesk.com/hc/en-us/articles/21952862266779-How-does-Lightning-work-in-AQUA

[Pmalek]

I think the best thing about Aqua isn't the Liquid network, but their good and easy to use LN implementation. Unfortunately, they convert LN to Liquid internally and also use Boltz. Looks like this wallet is doomed, as both liquid and boltz  doesnt look safe....
https://jan3.zendesk.com/hc/en-us/articles/21952862266779-How-does-Lightning-work-in-AQUA

It's certainly been a very bad period for Aqua and the JAN3 team. The Liquid Federation is missing around 600 LBTC unless something changed last night. That's quite an amount. Blockstream is beta testing Blockstream Swaps. Perhaps in the future, JAN3 and Aqua Wallet will look to partner with them and continue where Boltz left off. There has been no news coming from Boltz ever since the ownership change and the website is offline.

[internetional]

It's certainly been a very bad period for Aqua and the JAN3 team. The Liquid Federation is missing around 600 LBTC unless something changed last night.

I think the situation there is much more serious. Just because the hacker managed to burn 4,000 unbacked LBTCs doesn't mean they only created 4,000. They could have minted 4 million or even 4 billion. And since address balances on the Liquid blockchain are completely opaque, we will never know how many more unbacked LBTCs are currently sitting in Liquid addresses. Therefore, continuing to support Liquid is a short-sighted move for any wallet. The inevitable backlash from users regarding Liquid will definitely cast a shadow over the wallets they use to interact with the network.

I can't imagine what unique value Aqua could offer its users without Liquid support. Aqua would just turn into an ordinary wallet, no different from hundreds of others.

[bitmover]

It's certainly been a very bad period for Aqua and the JAN3 team. The Liquid Federation is missing around 600 LBTC unless something changed last night.

I think the situation there is much more serious. Just because the hacker managed to burn 4,000 unbacked LBTCs doesn't mean they only created 4,000. They could have minted 4 million or even 4 billion. And since address balances on the Liquid blockchain are completely opaque, we will never know how many more unbacked LBTCs are currently sitting in Liquid addresses. Therefore, continuing to support Liquid is a short-sighted move for any wallet. The inevitable backlash from users regarding Liquid will definitely cast a shadow over the wallets they use to interact with the network.

I can't imagine what unique value Aqua could offer its users without Liquid support. Aqua would just turn into an ordinary wallet, no different from hundreds of others.

And also no Boltz support, so their LN is useless as well.

I just moved out all my funds from aqua wallet, except for a 'dust' of $0.20 which I received as a donation from my domain.
It can't be converted to LN neither BTC mainchain anymore.

I will probably remove my wallet from my phone soon, and lose this dust.

[dkbit98]

I have a few bucks ($ 30) in bitcoin mainnet in aqua wallet. I converted it from LN long ago. They are still available after this hack.

I will  move them to my main mobile wallet.

That would be a good idea, but I would also suggest converting LN back to bitcoin mainnet.
I see holding anything on lightning network as much more risky than it was holding it in liquid assets.
Time will tell if I was right (again).

And also no Boltz support, so their LN is useless as well.

Exactly.
It's funny that Boltz was constantly attacked, to be point they had to quit and shut down their service.
There is also no mentione about Aqua Dolphin cards coming back, so I uninstalled Aqua wallet and moved on.

[bitbollo]

I have tried to send a transaction with USDT (few as low as possible) but I get error and fund bouncing back to my wallet. Minus few cents for commission...
Has anyone been able to make a transaction using liquid USDT?
As mentioned in their last update there are no issues for peg-in... but funds seems stucks and unable to being move

[Kruw]

I have tried to send a transaction with USDT (few as low as possible) but I get error and fund bouncing back to my wallet. Minus few cents for commission...
Has anyone been able to make a transaction using liquid USDT?
As mentioned in their last update there are no issues for peg-in... but funds seems stucks and unable to being move

Liquid was hacked. Use Bitcoin instead.

[bitbollo]

Thank you @Kruw for your comment, but it could be possible to use USDT and not only btc...
Anyway USDT on liquid network has not been hacked/moved/whatever. Aqua should be able to allow to spend these coins/send out.
According their last message (Jan3) the operations should be fine, and resumed.  Any feedback from users? This is why I was asking a comment...

[internetional]

In theory, the transactions should go through. At the very least, you can create exchange orders on various platforms to swap certain crypto assets for USDT on the Liquid network, which implies that these tokens are indeed being sent somehow. If the Aqua wallet fails to send the transaction, I would try importing the seed phrase into the Blockstream App or the SideSwap wallet and sending it from there.

[bitbollo]

In theory, the transactions should go through. At the very least, you can create exchange orders on various platforms to swap certain crypto assets for USDT on the Liquid network, which implies that these tokens are indeed being sent somehow. If the Aqua wallet fails to send the transaction, I would try importing the seed phrase into the Blockstream App or the SideSwap wallet and sending it from there.

thanks for suggestions.
Finally I have been able to move these coins adding a fee > 2.7 USDt - it was a negligible amount but it was nice to have an integrated service "all in one" including LN and BTC.
anyway their app was working very well, despite not penny fees in conversion/receiving/sendin USDt. with the dolphin card it was potentially the state of the art.
I am still hope they can resume the service as before...

[Pmalek]

AQUA Wallet has released an update about their service today. Here are the most important points:

- On-chain bitcoin transactions are working
- Liquid-to-Liquid transactions are working
- Liquid USDT cross-chain swaps are available via SideShift. Be careful with this. SideShift uses shotgun KYC. They perform AML checks, they can freeze your coins, and request KYC.
- Peg-in transactions are being processed via SideSwap
- In-app swaps via SideSwap are working
- Liquid USDT cross-chain swaps via Changelly should resume within the next 24 hours. Another swap service that relies on the shotgun KYC method.
- Liquid to Lightning Network swaps aren't working yet
- Peg-outs aren't working yet

https://x.com/AquaBitcoin/status/2099740591865422247

[internetional]

- Liquid USDT cross-chain swaps are available via SideShift. Be careful with this. SideShift uses shotgun KYC. They perform AML checks, they can freeze your coins, and request KYC.
...
- Liquid USDT cross-chain swaps via Changelly should resume within the next 24 hours. Another swap service that relies on the shotgun KYC method.

I want to add one detail. Usually, such services raise money laundering claims if the transferred cryptocurrency has an easily traceable history. If you send them Bitcoin via Lightning, the risk of facing a freeze is negligibly small. SideSwap and Changelly simply won't have any grounds to claim suspicion of money laundering; otherwise, it will be obvious to everyone that their suspicions are baseless.

However, Liquid can play a cruel trick on users here. Transactions in Liquid are generally considered confidential, and someone might think they can send transfers through this network without fearing AML terrorism. But in reality, only the types of tokens sent and their amounts are hidden. The entire transaction graph is public. Therefore, it is entirely possible to run into AML-related freezes.