Liquid Network Reboots Block Production Amid Bitcoin Withdrawal Hiccup

The Liquid Network has resumed block production after a major Bitcoin withdrawal tied to a vulnerability in Elements, its open-source software. The network is being brought back online in a cautious and staged manner, with block creation enabled while transaction processing and peg operations remain paused.

Liquid stated that it is monitoring the system to confirm full stabilization and has deployed required updates to its functionary and bridge nodes. According to the network, functionary nodes are now signing and validating blocks properly after the updates.

The Bitcoin withdrawal of approximately 4,000 BTC (worth around $320 million) occurred on September 6. The actors behind the withdrawal claimed to be 'white-hat hackers,' but their actions tied up nearly all of the network's funds in its federation wallet.