Liquid Network Resumes Block Production Amid Ongoing Recovery Efforts

The Liquid Network has resumed block production after a significant exploit occurred in September. On September 6, actors claiming to be 'white-hat hackers' withdrew about 4,000 BTC (worth roughly $320 million) from the network's federation wallet, leaving only about 5% of its balance intact.

The withdrawal was tied to a vulnerability in Elements, the open-source software that underpins the sidechain. Liquid has deployed necessary updates to its functionary and bridge nodes, which are now signing and validating blocks properly.

Liquid's restart is being done cautiously, with block production running 'without transactions.' Transaction processing and peg operations remain paused as the network continues recovery and monitoring.