Liquid Network Resumes Block Production After Bitcoin Exploit

{"heading":"The Incident and Recovery Efforts","subheading":"Details of the Bitcoin Withdrawal and Emergency Updates","paragraph_1":"Liquid Network, a Bitcoin-focused network, paused operations on September 6 after actors claiming to be white-hat hackers withdrew approximately 4,000 Bitcoin (BTC), worth about $320 million, from the network's federation wallet.","paragraph_2":"The withdrawal involved L-BTC originating from a bug in Elements, the open-source software underpinning the network. The actors subsequently returned 3,400 BTC, worth about $270 million at the time, after Blockstream confirmed that affected bridge nodes had been patched.","paragraph_3":"About 598 BTC, worth roughly $46 million at current prices, remained outstanding as of September 7. Liquid Network deployed emergency updates to Elements, the software underlying the network, to address the proof-verification cache vulnerability linked to the incident.","paragraph_4":"The emergency update, Elements v23.3.4, hardened cache keys used for range proofs as part of the network's recovery plan. Liquid Network also resumed block production without transactions as a precautionary measure while the network is monitored for full stabilization."}