Liquid Network resumes blocks after $320M Bitcoin withdrawal

Liquid Network has resumed block production without processing transactions after a $320 million Bitcoin withdrawal forced the sidechain to halt operations. Summary Functionary nodes have resumed signing and validating blocks after receiving required software updates. Transactions and BTC peg operations remain suspended while Liquid monitors the network. Hackers returned 3,400 BTC, leaving about 598 BTC outside the federation wallet. Elements v23.3.4 changes how the software verifies and stores confidential transaction proofs. Liquid Network said in a Thursday update that its functionary nodes were again producing blocks as intended, but the network would operate “without transactions” while developers monitored its condition. The limited restart allows Liquid to test its updated infrastructure without reopening transfers or exposing the peg system to new activity. According to the network, keeping transactions disabled will help operators “confirm full stabilization” before they restore other services. Functionary and bridge nodes have received the required software changes, Liquid added. Its functionaries can now sign and validate blocks, though users cannot yet send regular tran...