Low Fee Channel Closure Not Recognized by Onchain Wallet

[pffa4z9w]

Description:

My peer opened a channel to me and then initiated a closure with a very low fee (3 sats/vbyte). The closure is still pending and not recognized by my lnd onchain wallet, as indicated by a zero unconfirmed_balance. Additionally, the peer has gone offline and appears to have closed all channels.
I am running the latest version of LND: ╰╼ lncli -v lncli version 0.18.0-beta commit=v0.18.0-beta

Steps to Reproduce:

1. Check wallet balance:

   lncli walletbalance

   Output:

   {
       "total_balance": "XXXX",
       "confirmed_balance": "XXXX",
       "unconfirmed_balance": "0",
       "locked_balance": "0",
       "reserved_balance_anchor_chan": "100000",
       "account_balance": {
           "default": {
               "confirmed_balance": "XXXX",
               "unconfirmed_balance": "0"
           }
       }
   }

   Issue: The unconfirmed_balance is 0, which indicates that the channel closure transaction is not being recognized by my lnd onchain wallet.

2. List chain transactions:

   lncli listchaintxns --start_height 849175 --end_height -1

   Output (truncated):

   {
       "transactions": [
           {
               "tx_hash": "XXXX",
               "amount": "0",
               "num_confirmations": 0,
               "block_hash": "",
               "block_height": 0,
               "time_stamp": "time",
               "total_fees": "0",
               "dest_addresses": [
                   "DEST1",
                   "DEST2",
                   "DEST3",
                   "DEST4"
               ],
               "output_details": [
                   {
                       "output_type": "SCRIPT_TYPE_WITNESS_V0_SCRIPT_HASH",
                       "address": "DEST1",
                       "pk_script": "XXXX",
                       "output_index": "0",
                       "amount": "330",
                       "is_our_address": false
                   },
                   {
                       "output_type": "SCRIPT_TYPE_WITNESS_V0_SCRIPT_HASH",
                       "address": "DEST2",
                       "pk_script": "XXXX",
                       "output_index": "1",
                       "amount": "330",
                       "is_our_address": false
                   }
               ],
               "raw_tx_hex": "XXXX",
               "label": "0:closechannel:shortchanid-XXXXX",
               "previous_outpoints": [
                   {
                       "outpoint": "XXXX:1",
                       "is_our_output": false
                   }
               ]
           }
       ]
   }

   Issue: The closure transaction appears with zero confirmations and the destination addresses are not recognized as "ours", which means my wallet does not identify the outputs of this transaction as belonging to me.

3. Check pending channels:

   lncli pendingchannels

   Output:

   {
       "total_limbo_balance": "AMOUNT",
       "pending_open_channels": [],
       "pending_closing_channels": [],
       "pending_force_closing_channels": [],
       "waiting_close_channels": [
           {
               "channel": {
                   "remote_node_pub": "NODE_PUB",
                   "channel_point": "CHANPOINT:0",
                   "capacity": "CAPACITY",
                   "local_balance": "AMOUNT",
                   "remote_balance": "100078",
                   "local_chan_reserve_sat": "100000",
                   "remote_chan_reserve_sat": "100000",
                   "initiator": "INITIATOR_REMOTE",
                   "commitment_type": "ANCHORS",
                   "num_forwarding_packages": "0",
                   "chan_status_flags": "ChanStatusBorked|ChanStatusCommitBroadcasted|ChanStatusLocalCloseInitiator",
                   "private": false,
                   "memo": ""
               },
               "limbo_balance": "AMOUNT",
               "commitments": {
                   "local_txid": "TXID",
                   "remote_txid": "REMOTE_TXID",
                   "remote_pending_txid": "",
                   "local_commit_fee_sat": "896",
                   "remote_commit_fee_sat": "896",
                   "remote_pending_commit_fee_sat": "0"
               },
               "closing_txid": "TXID",
               "closing_tx_hex": ""
           }
       ]
   }

   Issue: The channel is marked as "waiting_close" in the pending channels, but no action appears to be progressing to finalize the closure.

4. Attempt to force close the channel:

   lncli closechannel --funding_txid=FUND_TXID --output_index=0 --force

   Output:

   [lncli] rpc error: code = Unknown desc = channel is already in the process of being force closed
   

   Issue: Trying to force close the channel results in an error stating that the channel is already in the process of being force closed, which contradicts the previous state showing it as "waiting_close".

Observed Behavior:

• The channel closure transaction is detected by mempool.space and my bitcoind, but my lnd onchain wallet does not recognize the unconfirmed transaction.
• The lncli pendingchannels command shows the channel as "waiting_close".
• The peer has gone offline and appears to have closed all channels.

Expected Behavior:

• The unconfirmed_balance should reflect the pending closure transaction.
• The closure should be recognized by my lnd onchain wallet.

Additional Information:

• The destination addresses of the closure transaction are not recognized as "ours".
• The closure transaction details include:
  • Destinations: DEST1, DEST2, DEST3, DEST4
  • Output amounts and details

Request:
I need guidance on how to retrieve my funds given the current state where the closure is pending with low fees and not recognized by my lnd onchain wallet.

Thank you for your assistance.