Liquid Network resumes block production after $320M exploit
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The Liquid Network has resumed block production following a $320 million Bitcoin withdrawal caused by a bug exploit. While blocks are being produced without transactions as a precaution, peg operations and transactions remain suspended. An emergency update to the underlying Elements software was released to address the vulnerability.
Why it matters
The source indicates the development is important as the network is cautiously restoring operations while confirming full stabilization, reflecting ongoing recovery efforts after a significant security breach. The suspension of transactions and peg operations impacts network functionality and user confidence.
Key context
On September 6, actors claiming to be white-hat hackers exploited a bug in Elements to withdraw about 4,000 BTC (approximately $320 million) from the federation wallet, which held roughly 4,200 BTC in total. Most of the stolen BTC (3,400) was returned after patches were applied, but about 598 BTC remains missing. Liquid paused operations immediately after the exploit to secure the network.
Key numbers and entities
Liquid Network, Elements software, Blockstream, approximately 4,000 BTC withdrawn, $320 million value, 3,400 BTC ($270 million) returned, 598 BTC ($46 million) outstanding. The update released was Elements v23.3.4.
What remains unclear
The source does not specify when full transactional activity and peg operations will resume or provide details on the recovery of the outstanding 598 BTC. It also does not clarify who exactly conducted the exploit or their motives beyond the claim of being white-hat hackers.