Liquid Network has resumed block production without processing transactions after a $320 million Bitcoin withdrawal forced the sidechain to halt operations. Liquid Network said in a Thursday update that its functionary nodes were again producing blocks as intended, but the…
- Liquid Network has resumed block production after a $320 million Bitcoin withdrawal exploited a software vulnerability, but transactions and peg operations remain suspended.
- The exploit involved creating unbacked L-BTC by exploiting a proof-verification flaw in Elements software, leading to the withdrawal of nearly all Bitcoin from the federation wallet.
- Hackers returned 3,400 BTC after the network patched the vulnerability, but approximately 598 BTC remains unaccounted for, raising questions about the 'white-hat' label.
Topics: Blockchain usage, Legal regulatory, Risk default, Private enterprise ledgers, Enforcement actions litigation, Smart contract vulnerabilities
Tags: #liquidnetwork #bitcoinwithdrawal #lbtc #elementssoftware #blockproduction #hackers #federationwallet #sidechain #pegoperations #blockstream