Liquid Network Restarts Block Production Amid Ongoing Security Concerns
The Liquid Network has restarted block production after patching its nodes to fix a vulnerability that allowed hackers to withdraw nearly $320 million in Bitcoin. The network, however, continues to halt transactions and Bitcoin peg operations due to security concerns.
Following the hack attack, functionaries returned 3,400 BTC to the Liquid federation wallet, but 598.5 BTC remains outside of their control. To prevent further exploitation, the network has temporarily separated block generation from transaction processing.
Liquid upgraded its software to Elements v23.3.4 prior to reactivating blocks and modifying cache keys used to validate proofs of transactions. The patch aims to prevent attackers from reusing proofs for invalid transactions.