Liquid Network Peg-Outs Remain Suspended Amid Ongoing Security Worries
Bull Bitcoin customers are facing an uncertain wait for their BTC withdrawals after a recent exploit on the Liquid Network. The peg-out system, which converts Liquid Bitcoin (L-BTC) into Bitcoin (BTC), remains suspended following the Sept. 6 attack.
According to Bull Bitcoin, the swap and exchange services allowing users to convert L-BTC to BTC could resume within 30 days. However, this is not a guarantee, as stated by Bull Bitcoin themselves.
The exploit took advantage of a vulnerability in Elements software to create approximately 4,000 unbacked L-BTC at 9:53 a.m. ET on Sept. 6. The Liquid Federation later released 3,996.02 BTC, with nearly all the funds sent to the attacker's address.
After some negotiation, around 3,400 BTC was returned to Liquid, leaving roughly 598.5 BTC outstanding. The network has since resumed block production and regular transactions, including L-BTC transfers. However, peg-out operations remain paused as work continues with Federation members and partners toward their safe restoration.