Key facts
- Liquid Network resumed block production on Sept. 7, though transactions and peg operations remain suspended.
- Approximately $320 million worth of Bitcoin was withdrawn from the network's federation wallet.
- The exploit was linked to a bug in Elements, the open-source software underpinning Liquid.
- About 3,400 BTC, worth roughly $270 million, was returned by the actors.
- Approximately 598 BTC, worth about $46 million, remained outstanding as of Sept. 7.
- Emergency software updates were deployed to address a proof-verification cache vulnerability.
The Liquid Network has resumed block production following a significant exploit that saw approximately $320 million worth of Bitcoin withdrawn from its federation wallet. While block production is active, transactions and peg operations remain suspended as recovery efforts continue. The network deployed emergency software updates to address a vulnerability in the underlying Elements software, which was linked to the incident. The actors who claimed to be white-hat hackers subsequently returned about $270 million worth of Bitcoin, leaving roughly $46 million outstanding as of September 7. The exploit targeted a bug in Elements, the open-source software that powers the Liquid Network.