Liquid Network Back Online After Multi-Million Dollar Bitcoin Heist

The Liquid Network has resumed block production after a major security exploit left it offline. On September 6, actors claiming to be white-hat hackers withdrew about $320 million in Bitcoin from the network's federation wallet, representing around 95% of its balance.

Following the incident, Blockstream confirmed that affected bridge nodes had been patched and that some of the stolen funds had been returned. About $270 million worth of Bitcoin was recovered after the actors returned 3,400 BTC.

The network has now resumed block production without transactions as a precautionary measure while it continues to monitor for full stabilization. Peg operations, however, remain suspended until the network's BTC/L-BTC reserve is restored.