$320M Liquid Network Exploit: Block Production Resumes Amid Ongoing Recovery
The Liquid Network has resumed block production after a massive $320 million Bitcoin withdrawal, but transactions and peg operations remain suspended as recovery efforts continue.
The network was paused on September 6th when actors claiming to be white-hat hackers withdrew about 4,000 BTC from the network's federation wallet, representing roughly 95% of its balance.
A day earlier, Liquid released an emergency update to Elements, the software underlying the network, to address a proof-verification cache vulnerability linked to the incident. The update hardened cache keys used for range proofs as part of the network's recovery plan.
Peg operations, including PAK-authorized peg-outs, remain suspended while the network works to restore its BTC/L-BTC reserve. About $270 million in Bitcoin was returned after the exploit, with about 598 BTC still outstanding worth around $46 million at current prices.