Crypto
Liquid Network Restarted After Major Bitcoin Exploit Leaves Users Stuck
The Liquid Network has restarted block production after patching its nodes in response to a major Bitcoin exploit. However, users are still unable to perform transactions or cash out L-BTC due to ongoing issues with Bitcoin peg operations.
The hack attack saw nearly $320 million of Bitcoin withdrawn from Liquid's federation wallet, leaving only 202 BTC in reserves. The attackers returned 3,400 BTC, but still hold 598.5 BTC outside the federation wallet.
Liquid upgraded its software to Elements v23.3.4 prior to reactivating block production and modifying cache keys used to validate proofs of transactions. Functionaries and bridges were patched before block creation was resumed, with transfers remaining off-limits.