Since the Casa Node's backup seed phrase does not restore funds that were in Lightning channels, using the following SCB recovery guide may be necessary to restore channel funds.
Note that a preferable node recovery process that is less prone to data loss can be found here.
This article is intended for advanced users, and covers how to recover funds from a non-working Casa Node using the the SCB (static channel backup) file. This recovery can be done on a laptop or desktop computer that has plenty of disk space.
1. Install Bitcoin Core and allow it to fully sync to the current block height.
2. Once Bitcoin Core is fully synced, install LND .
3. Remove the SD card from the Casa Node and read the contents via an SD USB adapter.
Note: on Windows and Mac you will need additional third party software in order to be able to read the Linux (EXT4) file system on the SD card.
The static channel backup file is located at /usr/local/casa/scb/channels.backup on the SD card.
4. Once you have a fresh LND instance connected to a synced bitcoin node, you can run:
5. Import your seed phrase. It will take some time to scan the blockchain.
6. Next, run this command:
./lncli restorechanbackup --multi_file /path/to/channels.backup
7. Close all the channels via the cli. You can do this by running:
Be aware that sometimes channel closings can take 24 hours or longer!
8. When you channels have closed, you can sweep the wallet funds to the address of your choosing.
./lncli sendcoins --sweepall --conf_target 10 --addr <address>
For more specific details about the process of LND recovery, you can go more in-depth by checking out this guide from Lightning Labs.