Liquid Network Resumes Block Production After $320M Bitcoin Withdrawal

Liquid Network has restarted block production after a major Bitcoin withdrawal from its federation wallet.

The network is still operating in a limited recovery mode, with peg operations and transactions paused during this period.

The restart comes after emergency software changes to Elements, the open-source platform that underpins Liquid, were made to address a vulnerability involving proof verification cache handling tied to the incident.

Liquid's current focus is on rebuilding its BTC/L-BTC reserve, which was significantly depleted by the withdrawal of approximately 4,000 BTC valued at around $320 million at the time.