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Moderate 63 Bitcoin

multi: add SCB restore support for production taproot channels

Public commit record

What the developer wrote

Authored by Olaoluwa Osuntokun

95/100 · Strong
multi: add SCB restore support for production taproot channels

Add the missing SimpleTaprootFinalVersion case to
chanrestore.openChannelShell() so that SCB backups created for
production taproot channels can be properly restored. Without this,
the channel type bits were not reconstructed during restore, causing
DLP to fail.

Also add integration tests for both confirmed and zero-conf variants
of production taproot channel backup restoration.
✓ Specific, descriptive subject✓ Names a concrete action or component✓ Provides detailed explanatory context✓ Explains rationale or failure mode✓ Mentions testing or verification
The short version

What changed, and why it matters

This commit fixes a bug in LND where backups of a new type of Bitcoin Lightning channel (called a 'production taproot channel') could not be properly restored. Without the fix, the channel type information was lost during restore, which could prevent users from recovering their funds through the Data Loss Protection (DLP) protocol. The commit also adds integration tests for both confirmed and unconfirmed (zero-conf) versions of these channels, and updates a warning comment about a test-only randomness option to make clear it must never be used in production because it could leak private keys.

Recommended action

Treat this as a functional/security fix and include it in release notes. Users relying on SCB backups for production taproot channels should upgrade before they need to restore. Review whether any production deployments are using WithCustomSigningRand, as the updated warning indicates it is unsafe outside test vector generation.

Security signals we found

01

Missing case in backup restoration logic for a new channel type, causing DLP failure and potential fund-recovery issues

02

Channel type bit reconstruction bug in SCB restore path

03

Strengthened warning around deterministic MuSig2 signing nonce source that could lead to private key extraction if used in production

Risk score

Why this scored 63/100

Our methodology →
Potential impact 22/30
Exploitability 12/25
Stealth signal 8/15
Affected reach 10/15
Confidence 7/10
Evidence quality 4/5
Human-validated context

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