Ethereum-based second-tier solution Arbitrum stopped working yesterday at 16:14 CET for 45 minutes due to a bug in the Sequencer contract. During this time, the network did not process transactions.
The project developers then reported users' funds were safe. Transactions received during the outage period were reassigned the timestamp at 5:59 p.m. UTC when Sequencer came back online, however, their order was fully preserved.
According to the devs:
"Sequencer never has the ability to steal funds or forge transactions, because every transaction it handles is digitally signed by a user and the signatures are checked by the Arbitrum chain, and at no point were user funds at risk."
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The problem has been caused by a Sequencer bug, which received a very large batch of transactions in a short time. The project team is working to fix the bug.
The developers have also reported the Arbitrum network is resistant to long-term Sequencer outages.
The project team have warned of possible recurrences as Arbitrum One, which was released at the end of August, is still in beta testing.