Design/Logic Flaw

Prior to 0.11.0-beta, LND (Lightning Network Daemon) had a vulnerability in its invoice database. While claiming on-chain a received HTLC output, it didn’t verify that the corresponding outgoing off-chain HTLC was already settled before releasing the preimage. In the case of a hash-and-amount collision with an invoice, the preimage for an expected payment was instead released. A malicious peer could have deliberately intercepted an HTLC intended for the victim node, probed the preimage through a colluding relayed HTLC, and stolen the intercepted HTLC. The impact is a loss of funds in certain situations, and a weakening of the victim’s receiver privacy.