Liquid Network Comes Back Online After Bitcoin Exploit | Crypto Security News
Crypto security news: Liquid Network Comes Back Online After Bitcoin Exploit. This update explains what happened, why it matters for wallets, exchanges, traders, and users, and what the market should watch next.
Crypto Security Update
The Liquid Network has resumed block production following a $320 million Bitcoin withdrawal, although transactions and peg operations remain suspended as recovery efforts continue.In a Thursday post on X, Liquid said block production had resumed “without transactions” as a precaution while the network is monitored to “confirm full stabilization.” Required updates to its functionary and bridge nodes have been deployed, with functionary nodes now signing and validating blocks as intended.Peg operations, including PAK-authorized peg-outs, remain suspended while the network works to restore its BTC/L-BTC reserve.A day earlier, Liquid released an emergency update to Elements, the software underlying the network, to address the proof-verification cache vulnerability linked to the incident. The update, Elements v23.3.4, hardened cache keys used for range proofs as part of the network’s recovery plan.Source: Liquid Network$270 million in Bitcoin returned after exploitLiquid paused operations on Sept. 6 after actors claiming to be white-hat hackers withdrew about 4,000 Bitcoin (BTC), worth roughly $320 million, from the network’s federation wallet.The withdrawal represented about 95% of the wallet’s roughly 4,200 BTC balance and involved L-BTC originating from a bug in Elements, the open-source software underpinning Liquid.The actors subsequently returned 3,400 BTC, worth about $270 million at the time, after Blockstream confirmed that affected bridge nodes had been patched. About 598 BTC, worth roughly $46 million at current prices, remained outstanding as of Sept. 7.Magazine: Token buybacks are booming. But are they good for crypto projects?Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
Why This Security News Matters
First, this development may affect exchange safety, wallet security, user trust, and broader market sentiment. In addition, it may influence platform security practices, fund recovery efforts, and regulatory pressure. As a result, traders and crypto users should watch the next updates closely.
What To Watch Next
Watch for official statements, post-mortem reports, wallet warnings, exchange responses, and fund recovery updates. In particular, any new details about phishing, exploits, private key exposure, or security patches could directly affect the broader crypto market.
