The Liquid network has resumed block production following the withdrawal of $320 million in bitcoins, although transactions and peg operations remain suspended as recovery efforts continue.
on thursday post On X, Liquid said block production has resumed “without transactions” as a precaution while the network is monitored “to ensure full stability”. Necessary updates have been deployed to its functionality and bridge nodes, functional nodes are now signing and verifying blocks as intended
Peg operations, including PAK-authorized peg-outs, remain suspended while the network works to restore its BTC/L-BTC reserves.
A day ago, Liquid announced an emergency Update Elements, the network’s underlying software, to deal with proof-of-concept cache vulnerabilities associated with events. The update, Elements v23.3.4, hardens cache keys used for proof-of-range as part of the network’s recovery plan.
Source: fluid network
$270 million returned after Bitcoin exploit
Liquid ceased operations on September 6 after what it claimed were white-hat hackers, about 4,000 Bitcoins (BTC), worth about $320 million, from the network’s Federation wallet.
The withdrawal represents about 95% of the wallet’s roughly 4,200 BTC balance and stems from a bug in L-BTC Elements, the open-source software underpinning Liquid.
The actors later returned 3,400 BTC, worth about $270 million, after Blockstream confirmed that the affected bridge nodes had been patched. About 598 BTC, worth roughly $46 million at current prices, were outstanding as of September 7.
magazine: Token buybacks are on the rise. But are they good for crypto projects?
