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ZipoTM Recovers Lost Bitcoins

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ZipoTM Recovers Lost Bitcoin

For the first time in a month, a sigh of relief can be had by ZipoTM. As previously reported, ZipoTM is the Redditor who claimed to have lost 4 Bitcoin (BTC) on the Lightning Network last month. At that time, the user stated that the second layer protocol vanished his 4 BTC. Later research proved that it was, in fact, his actions which caused the crypto to go missing. Thankfully, the Lightning Network community came to the rescue.

 

Lightning Network users saw a moment of caution when the r/Bitcoin community first read about ZipoTm’a monumental losses on a December 1, post. In the post, you could feel the frustration of ZipoTM over the loss of so many Satoshis. At first, the user blamed the Lightning Network.

 

Questionable Timing

Unfortunately, the timing of the loss was less than ideal as it followed the discovery of a bug in the second layer protocol which allowed nefarious users to steal channel funds. Due to the peculiarity, large amount, and timing of the loss, many in the Lightning Network community questioned the validity of the claim.

 

 

ZipoTM via Reddit

ZipoTM via Reddit

 

Luckily, a group of Lightning developers in the community stepped up to help the man. ZipoTM took a moment to thank these individuals who he said gave him “huge support” in the journey to retrieve the lost BTC. Today, most of the Bitcoin that the user lost has been recovered.

Share the Knowledge ZipoTM

After such a stressful ordeal its no surprise to see ZipoTM seek to help others avoid the same mistake. He posted recently on Reddit on his experiences. He explained that users need to research how the system works fully before using it to send significant amounts of BTC. Notably, developers repeatedly stated that the Lightning Network is in its Beta testing stages. Therefore, users should not send a large amount of crypto as of yet.

 

ZipoTM advised users seeking to force-close channels on a better method to accomplish this task. First, he explained that you need to always close channels manually on a one-on-one basis. Additionally, nodes need to do a cooperative closure of the channels that have funds on the seed. Next, comes various force-closures and other measures to shut down the still-open channels without risk of loss. Below are the actual steps he recommends for force closure of channels.

ZipoTM Lightning Network Channel Closure Steps

1: coop-closed channels with funds on seed

2: remote force-closed channels with perCommitPoint in channel.db

3: remote force-closed channels where we have to ask peers for the perCommitPoint

4: try with SCB [static channel backup]again with remaining channels

5: still open channels, try force-closing with old stat”

 

Helpful Advice

ZipoTM also gave some advice to new Lightning Network users. He recommended that you create a static channel backup for every new channel to prevent losses. Finally, he spoke on the importance of protecting the 24-word seed phrase your channels require.

 

ZipoTM Joined the Right Community

The example of ZipoTM and his lost Bitcoins highlights the best qualities of the Lightning Network community. In many cases, individuals never get the opportunity to retrieve lost tokens. Especially, when the loss comes due to their own negligence. Thankfully, Lightning Network developers have a strong interest in protecting the reputation of this pivotal protocol. You can expect to read similar stories in the future as new users overcome the technical barriers associated with running an LN channel.

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