Liquid Network Resumes After Massive Hack as BTC Recovery Continues

The Liquid Network has resumed normal operations following a major hack that occurred on September 6th. The incident resulted in the withdrawal of around 4,000 BTC from the Federation peg wallet, with approximately 3,400 BTC having been returned so far.

Block production and regular transactions have been running normally since September 10th, but one key function - converting LBTC back into Bitcoin through peg-outs - remains suspended. This has given users a second chance to move their LBTC across the network.

Many services are resuming operations, including Mifiel's digital promissory notes and Aqua's liquid asset transfers and peg-ins. However, users can still swap between LBTC and Bitcoin on the Lightning Network through Aqua's Indra feature, but liquidity is currently limited.