Liquid Network resumes block production after exploit

The Liquid Network has restarted block production after an exploit that led to the withdrawal of about $320 million in Bitcoin. The network is still keeping transactions and peg operations suspended while it monitors stability and continues recovery work. According to Liquid, emergency updates have been deployed to its functionary and bridge nodes, and the network’s functionary nodes are now signing and validating blocks again. An earlier software update to Elements, the opensource code behind Liquid, was released to fix a proofverification cache vulnerability tied to the incident. Liquid halted operations on Sept. 6 after actors claiming to be whitehat hackers withdrew roughly 4,000 BTC from the federation wallet. The group later returned about 3,400 BTC, while a smaller amount remained outstanding as of Sept. 7.